Stock Take 25/03/2021

SPAC acquires four cannabis companies

SPAC Greenrose Acquisition is acquiring four cannabis companies and plans to take them public. 

More and more US states are legalising the use of marijuana for adults. According to an NBC evaluation from November 2020, marijuana may now be consumed for recreational use in 15 US states and medical use is even permitted in 34 states.

Also of great importance for the cannabis industry is that the Democrats, who advocate the legalisation of marijuana, now control the White House and both chambers of the US Congress. This further increases the big growth potential for the market.

To capitalise on this trend, New York-based Greenrose Acquisition Corp. is acquiring four cannabis companies operating in the seven US states of Arizona, California, Colorado, Connecticut, Michigan, Nevada and Oregon. The deal, worth a total of 210 million US dollars, is already sealed. 

Greenrose Acquisition is a so-called “Special Purpose Acquisition Company” (SPAC), which translates as acquisition purpose company or shell company. It is, therefore, merely an empty but listed shell company whose organisers raise money from investors to buy up promising companies, which are then merged with the SPAC and in this way – via a shortcut, so to speak – taken public.

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However, as the company, which now intends to rename itself The Greenrose Holding Co. announced, it plans to switch from NASDAQ to over-the-counter (OTC) trading in the USA. A listing on the NEO Exchange in Toronto (Canada) is then planned after the transaction is completed.

The merged company will cover the complete value chain from production to sales with the four acquired companies Futureworks, Shango Holdings, Theraplant and True Harvest. Futureworks operates under the name The Health Center, runs three cannabis plant cultivation facilities, one processing facility and three marijuana dispensaries in Colorado. In addition, Shango operates in Arizona, California, Michigan, Nevada and Oregon. Shango works vertically in the latter three states, while Theraplant is active in Connecticut, with cultivation areas and a plant for further processing and packaging. True Harvest grows and processes cannabis at a facility in Arizona.

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Delivery start-up Gorillas a unicorn

Founded just ten months ago, Berlin-based food delivery start-up Gorillas is already worth more than a billion US dollars after its latest round of funding – making it a “unicorn” in the jargon of investment bankers.

On Thursday, the company announced that it had raised 244 million euros from investors with the promise of delivering purchases made via its platform to the customer within ten minutes of the order being placed. Existing investor Coatue Management led the financing round. Other investors include DST Global and the major Chinese technology group Tencent.

Gorillas intends to use the fresh capital to drive growth and invest in technology and infrastructure. The goal is to expand into more than 50 cities in ten countries, including Paris. After that, the company says it will move to the other side of the Atlantic – first to New York. 

Currently, Gorillas is active in twelve cities – including Amsterdam, London and Munich and Berlin. The company, which has already spawned imitators like Flink, now operates more than 40 mini-warehouses.

Successful IPO in Frankfurt

The shares of pipeline manufacturer Friedrich Vorwerk made a strong gain on their debut on the Frankfurt Stock Exchange. The shares rose to 47.68 euros on the first day of trading. The issue price for the 9.2 million shares had been 45 euros. The company from Tostedt near Hamburg was valued at 900 million euros, and 46 per cent of the shares are in free float. Friedrich Vorwerk himself will receive 90 million euros, which the company intends to use to expand in hydrogen transport.

Santander closes offices and branches in the UK

The Spanish big bank Banco Santander SA wants to continue the pandemic-related changes in working conditions in the UK after the crisis and is closing several offices and branches. The British subsidiary has reached an agreement with the relevant trade union in this context.

The bank will introduce contracts that will allow most of the employees affected by the reorganisation to work mainly from home. The agreement preserves jobs, the CWU union said. Santander Bank plans to close four of its large offices in the UK and close 111 of its 563 branches.

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