Nasdaq SPAC Greenrose Buys 4 Cannabis Companies For $210M, Plans OTC Listing

Greenrose Acquisition Corp. GNRSU is poised to acquire four cannabis companies for approximately $210 million.

The Amityville, New York-based company confirmed Monday it intends to change its name to The Greenrose Holding Company Inc. prior to closing the deals.

The companies Greenrose picked up include Shango Holdings Inc., Theraplant, LLC, True Harvest, LLC, and Futureworks LLC, which is doing business as The Health Center.

Greenrose also expects to debut on the OTCQX Best Market after transitioning from Nasdaq Capital Market.

The Cannabis-focused SPAC, or special purpose acquisition company, is also poised to list its stock on the NEO exchange once the acquisitions are finalized.

“As we develop and expand our Platform, we plan to leverage the experience of our combined management team and our scale to accelerate growth,” Greenrose president Paul Otto Wimer stated.

Transaction Details

The price tag includes $170 million in cash, $15 million in stock, and $25 million in debt.

An additional $110 million in earnouts could be paid up through the next three years, including $75 million in stock and $35 million in debt.

Once the transaction is closed, the company expects to generate roughly $158 million in revenue and an adjusted EBITDA of approximately $56 million in 2021.

Greenrose will launch an offering of $150 million in equity and debt securities in a private offering to fund the acquisitions.

The combined company will operate nine dispensaries and more than 300,000 square feet of cultivation and production space across seven states, including Arizona, California, Colorado, Connecticut, Michigan, Nevada, and Oregon.

“We are targeting strategic assets in several key states that present opportunities for further consolidation as we seek to deepen our presence, particularly in the West,” CEO and Director Mickey Harley disclosed.