Greenrose Acquisition today filed a preliminary proxy outling terms of its deal to acquire four cannabis companies: Shango Holdings, Futureworks, (d/b/a The Health Center), Theraplant and True Harvest.
Since the deal was announced in March, Greenrose voluntarily delisted from the Nasdaq to trade on OTCQX, twice extended its merger deadline and borrowed $450,000 from its sponsor.
Although the preliminary proxy does not include a date for the shareholder meeting, one of the agenda items is to vote on another extension, pushing the merger completion date back to Nov. 30 from the current Oct. 13 deadline.
The SPAC has said it will have up to $276 million going into its acquisition of the four cannabis companies. Terms call for Greenrose to acquire the companies for approximately $210 million, consisting of $170 million in cash, $15 million in stock and $25 million in debt. Part of the funding comes from $103 million in capital from SunStream Bancorp, consisting of $78 million in a multi-tranche senior secured loan facility and $25 million in unsecured convertible notes. Read more.
