New York-based cannabis firm PharmaCann is planning an initial public offering that could value the company at over $1 billion, according to a Reuters report citing sources familiar with the plan.
PharmaCann has not confirmed the IPO but it could take place this fall. The company reportedly submitted the IPO paperwork to U.S. and Canadian regulators within the last 30 to 45 days.
According to the report, Canadian investment bank Canaccord Genuity is expected to be the lead underwriter, with more banks likely to be hired. Canaccord did not comment on the report.
PharmaCann currently operates four medical cannabis dispensaries and one cultivation facility in New York and was one of just 10 companies given an initial license in the state. The company also operated in Illinois, Massachusetts, Pennsylvania, Ohio, and Maryland.
In 2018, PharmaCann had agreed to a $682 million takeover by MedMen but that deal ultimately fell through. At that time, PharmaCanna and MedMen described the deal’s termination as “mutual.”
Over the last few months, the company had received multiple takeover offers, including from blank-check firms, according to sources interviewed by Reuters. PharmaCann could still decide to stay private, decide against launching the IPO or go a different route to go public, the report says.
In June, Cresco Labs took a 10.5% stake in PharmaCann for $110.4 million which valued the company at $1.1 billion.
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