New Weed IPO to close on January 26th, 2018

A new Cannabis ETF "Cannabis Growth Opportunity Corporation" (or CGOC) is about to be listed on the Toronto Stock Exchange.

What does this mean?

This means around $75M will be pumped into weed stocks in the next two weeks!!!!

It also shows the growing demand for exposure to the broader weed market.

What's the word on Bay Street?

As a purchaser of this IPO, I was able to talk with some people from Questrade (one of the IPO sellers) and Stonecastle Investment Management (fund manager). Apparently demand is high, with many people unable to get in on the IPO.

Also changes to warrant structure is a great piece of news, with the ability to buy more stock at $2.50 extended to 24 months.

From the CGOC official website...

"TORONTO, Jan. 17, 2018 – Cannabis Growth Opportunity Corporation (the “Corporation“) is pleased to announce that it has filed a final prospectus (the “Prospectus“) in respect of an initial public offering (the “Offering“) of up to $75,000,000 of units of the Corporation (the “Units“) at a purchase price of $2.50 per Unit. Each Unit consists of one common share (each, a “Common Share“) and one Common Share purchase warrant (each, a “Warrant“) in the capital of the Corporation. The Units issued pursuant to the Offering will separate into Common Shares and Warrants immediately after closing of the Offering. Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $2.50, subject to adjustment, on or prior to 5:00 p.m. (Toronto time) on the date that is the earlier of (i) 24 months following the closing of the Offering, and (ii) the date specified in any warrant acceleration notice delivered by the Corporation as described in greater detail in the Prospectus. The Offering is expected to close on or around January 26, 2018"