Subversive Capital Acquisition Corp (NEO: GRAM.U) (OTC: SBVCF) this morning announced the results of redemption notices. The firm has indicated that following redemptions from certain shareholders the SPAC will have an aggregate of US$381 million in company coffers.
With the redemption period now closed, the company will able to now forge ahead with its qualifying transaction, whereby it is to acquire all of the equity of CMG Partners, whom operates as Caliva, as well as Left Coast Ventures, to form what will be referred to as TPCO Holding Corp, or The Parent Company. The company has also entered into notable agreements with Jay-Z as well as Roc Nation.
Following the closing of the transaction, Subversive Capital will transform into one of the most well-capitalized cannabis operators within the US. The firm will own its own supply chain, enabling the company to leverage its scale to profitably produce and distribute its portfolio of products.
The company has revealed that with its massive cash position it intends to pursue an aggressive M&A strategy to accelerate growth, while also focusing on market share gains and profitability.
“the limited redemptions reaffirm investor confidence for The Parent Company and our vertically integrated strategy to consolidate and dominate the California cannabis market. We are grateful for our shareholders’ support and look forward to the anticipated close of the transaction later this week.”
Michael Auerbach, Chairman of SCAC and The Parent Company
The transaction is expected to close on January 15, 2021.
Subversive Capital Acquisition Corp last traded at $10.51 on the Neo.
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