Tuatara Capital Acquisition, a cannabis-focused special purpose acquisition company (SPAC), said it raised $175 million in an initial public stock offering with an option for its underwriters to purchase and sell an additional $26.3 million worth of securities.
SPACs, also known as blank-check companies, are becoming increasingly common in the cannabis industry as a vehicle to quickly go public and acquire assets in burgeoning markets.
Tuatara Capital Acquisition (TCA), backed by New York investment banking firm Tuatara Capital, started trading on the Nasdaq on Feb. 12 under the ticker symbol TCACU.
TCA’s directors include former General Electric executives and Richard Taney, ex-CEO of Massachusetts-based multistate operator Curaleaf.
TCA said in a news release that it’s focused on the growth potential of non-recreational cannabis and won’t invest in federally illegal marijuana businesses.
“Potential sources for additional growth include the disruption of a variety of health-related market segments including pain management, sleep, skin care and cosmetics and anxiety, as well as many other applications that are being explored,” the company said on its website.
TCA’s parent company, Tuatara Capital, rocked the marijuana sector in 2016 by securing a $93 million raise for cannabis-related investments. At the time, Tuatara’s raise was by far the biggest in the marijuana industry.
– Jeff Smith