California Weed Supplier HERBL in SPAC Talks: Report

California weed supplier HERBL is in talks to go public by merging with BGP Acquisition at a valuation of about $600 million, Reuters reports, citing sources familiar with the matter. HERBL is one of several U.S. cannabis companies raising funds in anticipation of potential federal reforms.

Santa-Barbara, California-based HERBL, has seen its post-merger enterprise value cut to between $450 million and $500 million in recent weeks, from over $630 million in the original agreement reached with BGP around June, the sources said. That would translate to an equity valuation of about $600 million, down from around $800 million in the previous agreement. Read more.

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