U.S. blank check firms eyeing cannabis companies are struggling to find suitable targets and many are merging into unrelated industries, Reuters reports, as weak after-market performance of recent listings dent confidence.
Hopes of legalization of recreational use of marijuana in the United States saw public cannabis companies enjoy some of their best gains ever after Democrats gained slim control of both houses of Congress and promised federal reform.
The ensuing frenzy saw 18 cannabis-focused SPACs raising around $3.3 billion by August, with more than half of the amount invested through SPAC mergers. But with Democrats making little progress on their promises, the euphoria has fizzled. Read more.
