Cresco Labs co-founder and former president Joe Caltabiano is launching a $100 million SPAC (special purpose acquisition corporation) aimed at purchasing cannabis companies in the U.S., Canada or international markets.
The so-called blank check company, Choice Consolidation Corp., today filed a 137-page preliminary prospectus outlining its plans to buy into the marijuana sector.
Caltabiano previously teased his plans to look for potential acquisition targets during an interview with THCnet last November.
The newly formed SPAC intends to list its class A shares on Canada’s Neo Exchange and has $32.5 million in committed capital from lead investors, according to the filing.
Caltabiano, who left Cresco last March, will serve as CEO of Choice Consolidation. Other key members of the management team include former Green Thumb Industries CEO Peter Kadens, and former Cresco CFO Ken Amann.
Lois Mannon, a CPA who runs a private accounting and financial advisory services firm, will serve as CFO.
Lisa Gavales, a retail executive with three decades of experience at popular chains like Bloomingdale’s, Talbots and Express, among others, has also been appointed as an independent board director.
Investors in the SPAC include Caltabiano and Senvest Management, a New York City-based firm with $2 billion in assets under management. Senvest already has $160 million invested in the U.S. cannabis space and is an anchor investor in Weedmaps.
Caltabiano and Senvest are sponsoring the SPAC via separate investment vehicles. Together, they intend to purchase $5 million worth of sponsor warrants, priced at $1 each, according to the preliminary prospectus.
Published: January 22, 2021