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Cannabis Industry Chart Of The Week: SPACS Underperform The Marijuana Market

SPACS have been a significant part of the cannabis landscape since the late 2017 IPO of Cannabis Strategies Acquisition Corp, now AYR Wellness. Twenty-three…

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SPACS have been a significant part of the cannabis landscape since the late 2017 IPO of Cannabis Strategies Acquisition Corp, now AYR Wellness. Twenty-three Cannabis SPAC IPOs have been completed for total proceeds of $4.24B.  Of these, 5 SPACs with original IPO proceeds of $920M acquired non-cannabis businesses ranging from Wine to Space. Eight representing initial IPO proceeds of $1.72B, merged with cannabis-related companies, and 10 representing original IPO proceeds of $1.60B are still either looking for deals ($1.2B) or have transactions pending ($.4B).

The graph is arranged in chronological order with the oldest de-SPAC deal on the left.

The green bars depict the annualized total returns of each company since its qualifying transaction, while the orange dot represents the annualized total return of the MJ Alternative Harvest ETF over the same period.

Given the significant downward draft of cannabis stocks over much of 2021, it isn't surprising that all of the total returns are negative.

More surprising is ...

Full story available on Benzinga.com

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