Choice Consolidation, a special purpose acquisition corporation (SPAC) that was created in hopes of forming a new multi-state operator in the growing cannabis space, is shutting down and returning its investors' money.
The company announced it will be wound-up in accordance with its articles and the policies of the NEO Exchange and that the company's Class A restricted voting units, each comprised of one Class A restricted voting share and one-quarter of a warrant, will be automatically redeemed on or about August 16, 2022. The company's board of directors has determined that it is in the best interests of the company and its shareholders for Choice to be wound-up as they do not believe that an appropriate qualifying transaction can be identified and completed within the company's permitted timeline.
“While the creation of the legal and regulated cannabis industry presents the opportunity to harness growth potential of a burgeoning industry, the current shifting market conditions and partisan political gridlock have made our current pathway too unpredictable. After careful review and consideration, we believe it is in the best interest of our shareholders to return their investments at a time when it can be better deployed in other vehicles. Our passion and confidence in the cannabis sector have not waned, and I look forward to unlocking future opportunities in the industry,” said Joe Caltabiano, CEO of Choice Consolidation Corp.
The redemption amount per Class A Restricted Voting Unit is anticipated to be U.S.$10.00. Each one-quarter of a Warrant forming part of a Class A Restricted Voting Unit will be redeemed for U.S.$0.10, and the remainder of the redemption price for such Class A Restricted Voting Unit will be payable in respect of the Class A Restricted Voting Share.
Choice Consolidation said its acquisition strategy focused on strategically important limited license states, and the company was looking to acquire single-state operators, distressed assets and rehabilitation licenses. But current conditions favor single-state operators maintaining the status quo until capital is flush to create operating scale. When favorable tax benefits are available and cannabis marketing and branding is normalized nationwide, conditions will improve for single-state operators to enter the public market.