The initial public offering for “blank check” company Collective Growth Corp. continues to be delayed on the Nasdaq because of the volatile stock market and uncertainty caused by the global coronavirus outbreak.
The newly organized company, led by former Canopy Growth Corp. executives Bruce Linton, Tim Saunders and Geoff Whaling, was established in hopes of investing in and further developing the U.S. hemp market for hemp-derived cannabinoid and fiber products.
In March, Collective Growth filed with the U.S. Securities and Exchange Commission seeking a target capital raise of $150 million to $175 million to purchase or invest in a combination of businesses.
Collective Growth Corp. president and co-founder Geoff Whaling told National Hemp Association members this week that the company had hoped to start trading Thursday after New-York-based financial services firm Cantor Fitzgerald set the price. Whaling is also the NHA chairman.
“We had a discussion on Tuesday, which … resulted with a recommendation that we wait a few more days or at least until there is a little more settlement of the Nasdaq market.”,” Whaling told Hemp Industry Daily in an email.
Whaling said there was broad support among the investors he and Linton met with during a “marketing roadshow” for the new company in March.
The company had received preliminary approval from the SEC to raise the money through a March 17 IPO on the Nasdaq, which was delayed due to the coronavirus outbreak.