Former Canopy Growth CEO Bruce Linton has launched a new company, Collective Growth, focused on investment opportunities in the hemp and CBD space, Yahoo Finance reports. The firm is co-founded by Geoff Whaling, the current chairman of the National Hemp Association who worked with Linton at Canopy and supervised the company’s buildout of its New York Cultivation facility.
The venture aims to raise up to $150 million in an initial public offering as a special purpose acquisition company and filed Monday with the Securities and Exchange Commission to eventually list on the Nasdaq under the CGROU symbol, the report says.
“Where we have a space right now is hemp shouldn’t just be viewed as CBD. Hemp has so many virtues that are under-realized. What we want to take is the whole plant and create a profit from every element of it.” – Linton to Yahoo Finance
Linton will serve as the Chairman and CEO of the firm, while Whaling was named president. The leadership team also includes form Canopy Growth Chief Financial Officer Tim Saunders, who held the same role with Canopy for four years until last May, New Cannabis Ventures reports.
According to a Renaissance Capital report, the company plans to raise $150 million by offering 15 million units at a price of $10. Each unit comprises one Class A share and one-half of a redeemable warrant, which is exercisable at $11.50. At the proposed deal size, Collective Growth would hold a market value of $190 million, the report says.
Linton was ousted by Canopy Growth last July amid a shakeup at the company that saw four directors installed by Constellation Brands – an alcohol distributor that holds about 38 percent of the company’s stock. He was named executive chairman of Vireo Health in November.