Marijuana SPAC Silver Spike prices IPO to raise $250 million

Marijuana industry special purpose acquisition company (SPAC) Silver Spike Acquisition Corp. II priced an initial public offering on the Nasdaq exchange to raise $250 million.

The company is issuing 25 million units at $10 each. Each unit includes one share and one-quarter of a redeemable warrant that entitles the holder to purchase a share at $11.50 per warrant.

The units will trade on the Nasdaq under the symbol SPKBU, with shares trading as SPKB and warrants as SPKBW.

The SPAC “intends to focus on businesses in the cannabis industry that are compliant with all applicable laws and regulations within the jurisdictions in which they are located or operate,” Silver Spike Acquisition Corp. II noted in a news release.

The SPAC’s planned business combination could also target “related industries such as consumer packaged goods, health & wellness, technology, pharmaceuticals, manufacturing, distribution, logistics, and brand management,” according to a preliminary prospectus filed with the U.S. Securities and Exchange Commission.

“Given the management team’s extensive financial expertise, we may also pursue a business combination in the financial services and asset management industries,” the filing said.

Silver Spike Acquisition Corp. II is headed by founder and CEO Scott Gordon, who was also chief executive of a previous SPAC, Silver Spike Acquisition Corp., that merged with cannabis tech firm Weedmaps in December 2020.