Benzinga | Aug 16, 2021 02:03PM EDT

Cannabis Unicorn PharmaCann Could IPO Soon, Valued At $1.1B+

One of the largest private cannabis companies in the world could soon go public on the OTC Markets with a valuation of more than $1 billion.

According to a report from Reuters, PharmaCann, a Chicago-based, vertically integrated company with operations in six states including the highly-coveted New York state, could IPO as soon as next fall, as it looks to raise funds ahead of New York's adult-use cannabis program's debut. Some of the sources indicated other options are still being considered, though.

Sources also mentioned PharmaCann would likely seek to list in Canada, following the steps of its competitor Ascend Wellness Holdings Inc (OTC:AAWH), which made its public debut in May and is already valued at almost $2 billion, after a surge of more than 35% in its stock price since opening.

The Details

According to sources familiar with the issue -- who asked for their identities to be kept private, Canaccord Genuity Group Inc (OTC:CCORF) will act as the lead underwriter for PharmaCann's offering.

The IPO would follow a recent investment of $110.4 million. In June, Canadian giant Cronos Group Inc (NASDAQ:CRON) acquired a 10.5% stake in PharmaCann at a valuation of $1.1 billion. This suggests the floor for the IPO valuation should be at $1.1 billion.

Back in 2018, Medmen Enterprises Inc (OTC:MMNFF) got close to purchasing PharmaCann for roughly $700 million, in a deal that ultimately fell apart in 2019.

M?s contenido sobre cannabis en Espa?ol en El Planteo.