The Daily Dish (12/31/20)
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The latest cannabis company to go public via a special purpose acquisition company, Clever Leaves Holdings, hopes to leverage unprecedented political tailwinds to establish itself as the industry’s leading global cannabis company, according to Clever Leaves CEO Kyle Detwiler.
“I think with [President-elect Joe] Biden winning the White House, this is the perfect time for us to go public, because I think you’re going to see advances globally in legalizing cannabis, and I think you may even see advances in U.S. policy, which could allow us to bring product into our home country,” he told Cheddar Wednesday.
Clever Leaves Holdings kicked off trading on the Nasdaq on December 18 under the ticker $CLVR after acquiring Schultze Special Purpose Acquisition Corporation and Clever Leaves International in a transaction valued at about $205 million. The transaction left the newly combined company with about $80 million in cash on its balance sheet, which it plans to use sparingly to augment the growth of the platform.
“Our main focus on that cash is to execute on the business plan that we promised to deliver to investors,” said Detwiler, who boasts a background in investment banking at Blackstone, KKR, and Morgan Stanley.
Clever Leaves became the first cannabis company to obtain EU – Good Manufacturing Practice certification in Latin America for its Colombia facility in July, according to Marijuana Business Daily. The certification, which came shortly after Clever Leaves inked a regional supply deal with Canopy Growth’s Latin American subsidiary, is expected to increase Clever Leaves’ capacity to supply international markets at a time when more countries might be eyeing cannabis legalization.
With more than $545 million in contracted revenues across its diverse and growing set of customers, Romeo Power $RMO is delivering simplified, electrification solutions for medium- and heavy-duty commercial vehicles. The company designs and produces battery management systems, modules and packs in house at its 113,000 square-foot manufacturing facility in Los Angeles, California.
The company was founded in 2016 by entrepreneur Michael Patterson. It has approximately 100 employees and more than 60 battery-specific engineers. Robert Mancini, Chief Executive Officer of RMG, adds: “We spent significant time and evaluated hundreds of companies before selecting Romeo Power for this transaction. Romeo Power’s innovative technology and strong partnerships solidify its position as a market leader, and we look forward to working with them.”
The Business Combination valued Romeo Power at a $900 million pre-money enterprise value and resulted in Romeo Power raising approximately $394 million (prior to expenses) in additional equity funding. Approximately 99.8% of RMG shareholders voting their shares voted in favor of the Business Combination and no RMG shareholders redeemed their RMG shares. The additional funds are expected to support Romeo Power’s continued growth and innovation, infrastructure and R&D investments.
Rush Street Interactive, the online gambling arm of casino operator Rush Street Gaming, finalized its combination with dMY Technology Group on Tuesday and went public on the New York Stock Exchange the following day. The combined company was renamed Rush Street Interactive, Inc. and its common stock as well as warrants of the combined company now trade under the ticker symbols $RSI and $RSIWS
Rush Street Interactive was founded in 2012 in anticipation of new regulations permitting online casino-style gaming in a number of states. The company launched its first gaming site in New Jersey in 2016. It has since then launched both online casino and sports betting products in five more states – Colorado, Pennsylvania, Indiana, Iowa, and Illinois – as well as in Colombia.
The company has recently landed important partnerships that will see it go live in New York and West Virginia at some point in 2021.
Niccolo de Masi, CEO of dMY, said that through its “differentiated offerings and loyal user base driven by strong player trust and engagement”, Rush Street Interactive is ideally positioned to “capitalize on the rapid growth of online casino and online sports betting” and that they believe the company has the best product offering, the best proprietary technology platform, and the best customer service in the market.
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