Choice Consolidation will be wound-up, with each of the SPAC’s units, comprised of one Class A restricted share and one-quarter of a warrant to be redeemed by Aug. 16. Shares will be redeemed for $10 each; quarter-warrants for 10 cents each. The company’s board of directors in a press release said it is in the best interests of shareholders for the company to be wound-up as the board does not believe a qualifying transaction can be identified and completed within the permitted timeline.
“While the creation of the legal and regulated cannabis industry presents the opportunity to harness growth potential of a burgeoning industry, the current shifting market conditions and partisan political gridlock have made our current pathway too unpredictable,” said CEO Joe Caltabiano. “After careful review and consideration, we believe it is in the best interest of our shareholders to return their investments at a time when it can be better deployed in other vehicles. Our passion and confidence in the cannabis sector have not waned, and I look forward to unlocking future opportunities in the industry.”
Choice Consolidation’s acquisition strategy focused on strategically important limited license states, and the company was looking to acquire single-state operators, distressed assets and rehabilitation licenses. However, the SPAC said current conditions favor single-state operators maintaining the status quo until capital is flush to create operating scale. When favorable tax benefits are available and cannabis marketing and branding is normalized nationwide, conditions will improve for single-state operators to enter the public market, the SPAC said in the press release. Read more.
