William Sumner
Without a doubt, The Green Organic Dutchman Holdings (TGOD) has one of the hottest IPOs in the cannabis industry right now. Initially slated to raise around $102 million, TGOD has amended their IPO twice due to investor demand and have grown an already impressive offering to $132,263,225.
For all the Johnny Come Latelys kicking themselves for not getting in on this red-hot IPO sooner, have no fear. There is already a handful of new investment IPOs waiting just around the corner, and they all look just as promising as TGOD. Here are four upcoming IPOs that you need to keep an eye on:
Acreage Holdings
Founded by a team of Wall Street veterans and financial gurus, Acreage Holdings is a well-financed company with a diverse portfolio. With licenses in cannabis cultivation, processing, and retail dispensaries; the company is currently operating in 11 U.S. states and has plans for further expansion. Most notably, the company rocked the world of cannabis and politics when it announced the addition of former U.S. Speaker of the House John Boehner and former Massachusetts Gov. Bill Weld to its board of advisers. So far the company has already raised $50 million and plans to go public in Canada sometime this year. With two heavy hitters like Boehner and Weld on their board and one of the largest cannabis cultivation footprints in the industry, Acreage is bound to give the top dogs like Canopy a run for their money.
Acreage is focused on medical marijuana and with a portfolio that spans 11 states, it has the largest footprint of any U.S. cannabis company. Initially, the company began life as High Street Capital and had intended on just making investments in cannabis companies, but it has since pivoted to become an operator. The IPO is expected to occur later this year in the Canadian market.
MedMen
This next IPO is not really an IPO, but nevertheless, it’s something that you should take note of. MedMen is a California-based cannabis retailer with operations in multiple states. As one of ten licensed medical cannabis operators in the state of New York, the company holds a lease on Fifth Avenue in Manhattan and will soon open a retail dispensary directly on the Las Vegas strip. Instead of doing a simple IPO, the company has decided to go public through something called a Reverse Takeover (RTO) and had entered into a letter of intent to merge with the publicly traded company OutdoorPartner Media Corporation. Instead, MedMen is doing its RTO with Ladera Ventures Corp. (TSXV:LV.H). Once the RTO is complete which is expected in the second quarter of this year, MedMen will essentially become a publicly traded company itself.
MedMen is also beginning life as a public company in Canada. Adam Bierman, the Chief Executive Officer, and Co-Founder says he believes the company can raise more money in Canada versus the U.S. stock market.
MJIC Inc.
Compared to the other IPOs discussed so far, this one has been flying under the radar a bit, which is why you definitely want to keep a close watch on MJIC Inc. MJIC is a self-described “omnichannel” for the cannabis industry attempting to connect the multiple segments of the industry through a variety of services that it offers; such as accounting, compliance, e-commerce, etc… The company hopes to launch its IPO sometime in the third quarter of this year and plans to use the funds for its expansion in California as well as future mergers and acquisitions down the road.
CEO Sturges Karban said the company plans on raising at least $20 million in the offering, which has been discussed for some time, but the planning began in earnest over the last couple of months. In addition to creating a distribution channel, MJIC also owns MJIC News and the Rolling Paper Depot.
Dixie Brands
The maker of the famous edibles brand, Dixie Elixirs, the Colorado-based cannabis company is currently considering its IPO options. This year the company expects to generate approximately $20 million in revenue and expects to more than double that figure ($50 million) by next year. Last month the company closed a $4 million funding round and hopes to use those funds to expand its operations from four states to 10. Details about its upcoming IPO are scarce, but what is known is that it would be offered either at the end of this year or sometime in early 2019. Speaking with Bloomberg, Dixie CEO and majority shareholder, Chuck Smith, said that the IPO would go towards funding future brand acquisitions. “We need access to capital, we need liquidity because this growth is very expensive,” said Smith. “We’re going to continue to acquire brands or innovate them.”
33 comments
Jeff
May 15, 2018 at 10:45 am
Why would Acreage Holdings go public in Canada? Has Acreage Holdings ever publicly stated that they will being going public thru Canada?
Debra Borchardt
May 15, 2018 at 6:36 pm
Companies can raise more money if they go public in Canada versus the U.S.
Liz
September 17, 2018 at 7:48 am
Ummm no. Because it’s federally illegal in the US.
Debra Borchardt
September 17, 2018 at 7:59 am
That hasn’t stopped an entire industry from being created.
David
September 22, 2018 at 3:31 am
Are you serious?!?! It has 0 to donthis federal legality in the US!
Walter lang
December 31, 2018 at 5:33 am
With the new hemp leg. Signed by trump the canadien companies are and will be hurt. That’s utter nonsense that going public in Canada can raise more money.
Cathy
August 1, 2018 at 8:29 pm
What is acreage holdings selling at?
Debra Borchardt
August 2, 2018 at 8:34 am
The shares aren’t available for sale yet.
Luca
August 3, 2018 at 1:15 pm
Do you know when the stocks will be available to the public?
Debra Borchardt
August 3, 2018 at 5:16 pm
They will be at different times, but I suspect between early September and early November.
Luca
August 3, 2018 at 1:17 pm
Do you know when acreage holding will go public?
Debra Borchardt
August 3, 2018 at 5:15 pm
Hi Luca,
We are being told early in the fall.
Debra
Gustav Land
August 12, 2018 at 8:04 pm
How can I buy pre IPO Acreage Holding Shares?
Thanks
Debra Borchardt
August 12, 2018 at 8:06 pm
The only people that were able to do that were people involved in the private effort to raise capital. There is no secondary market for private shares. You’ll have to wait until it is publicly traded.
michael
August 3, 2018 at 12:00 pm
how can I be positioned to participate in the ipo?
Debra Borchardt
August 3, 2018 at 5:17 pm
You’ll need to have an account established with a broker that will trade in Canadian stocks. You’ll have to wait until the shares begin publicly trading in order to participate.
Anne
August 6, 2018 at 6:47 pm
Where did Acreage holdings actually get operating experience?
Brett Roper
August 6, 2018 at 7:57 pm
Acreage has multiple classes of stock on top of the common issuance so wait for the dust to settle similar to the MedMen deal and offering which was definitely lopsided in favor of a few individuals.
Melissa Parry
September 5, 2018 at 2:58 pm
I’m new to stocks. Would you guys recommend buying right when they go IPO or later? I know the hype may raise the price the first day.
Debra Borchardt
September 6, 2018 at 12:25 pm
It’s hard to predict how a stock will react, but typically a two-week wait is best for overall longer performance.
Glenn Dahlquist
September 19, 2018 at 3:25 pm
I would like to know at what time of day or night that it will be available for the public. A lot of people want to prepare. How can we get the news as to when it is made available
Debra Borchardt
September 19, 2018 at 5:36 pm
Usually, when stocks begin trading publicly for the first time, it is in the morning following the market opening.
Michael
October 1, 2018 at 11:36 am
If you were in my shoes, what stocks would be the best time to invest today?
Debra Borchardt
October 1, 2018 at 8:36 pm
I don’t do stock picking. If I did, I would do it as a broker and earn a commission!
David
September 22, 2018 at 3:34 am
You all missing the BIG one… Mjardin Group is on the cusp. Look at them. Phenomenal company going public in Canada soon. This is a winner. MedMen? Come on…
Debra Borchardt
September 24, 2018 at 11:32 am
Back in May, MedMen was the largest cannabis company by market cap to go public. Things have changed dramatically since that time.
MIke
September 28, 2018 at 2:49 pm
Look into Quinsam Capital (QCA /QCAAF) if you want to get in Acreage.
Jay
October 25, 2018 at 6:22 pm
Hi Debra,
The information that you provide is amazing!
I have positions ahead of the Acreage, Dixie Brands and Curaleaf ipo s coming soon.
What is your take with the current market conditions and the effect on the ipo price when trading starts?
Many Thanks!
Jay
October 25, 2018 at 8:13 pm
Hello Debra,
What are your thoughts on the effect of the current market conditions on the pending ipos s of Curaleaf, Dixie Brands and Acreage?
Thank you
Debra Borchardt
October 26, 2018 at 8:40 am
I would expect the price will be good for both Acreage and Curaleaf. Dixie is a harder call. There could be some overhang from past baggage, but then beverages are all the rage right now.
TM
October 27, 2018 at 7:27 am
I’m hearing about a US based company w 15mm in revs and looking at 30+ in 2019 called Bhang. Consumer facing covering all the categories from recreational to CBD, oils and vape. Going public via RTO with a 10mm commensurate capital raise. Credible Canadian banks in the deal. Any insights?
Jo Ann M Smith
June 27, 2019 at 12:26 am
Are there any companies that will allow investors to invest in their company prior to the IPO? If so, how does one go about investing? Also, is there a California based medical marijuana company that has a cultivation, retail and medical business? Do you know the name? Thanks. I am very new to investing.
Debra Borchardt
June 27, 2019 at 8:33 am
Plenty of companies do allow pre-IPO investing. Usually, you have to be defined as an “Accredited Investor” for the bigger deals. Or you have to place your money with a private equity group and then they will do the research to determine the best companies to invest in. Some smaller companies do crowdfunding deals to raise money. There are also various conferences that take place that bring investors together with companies looking to raise money.