Original New York Cannabis Licensee PharmaCann Plans Initial Public Offering (IPO)
The Dank Investor Posted On August 16, 2021 
PharmaCann, one of the 10 original cannabis licensees in New York, has confidentially filed for an initial public offering that could value it at well over $1 billion, sources familiar with the matter have shared privately.
The IPO would be utilized to help PharmaCann raise capital as New York State prepares for adult-use 21+ recreational marijuana sales. Those sales, expected to begin in 2022, are a major driving factor of PharmaCann’s business.
IPO plans are set for Fall 2021 based on the confidential source. A PharmaCann spokesperson declined to comment to Reuters. The Dank Investor has also reached out to PharmaCann for comment but had yet to hear back at time of publication.
PharmaCann Operations
PharmaCann operates in New York along with five other states in the US as a multi-state operator. The MSO is expected to dual-list on the Canadian Securities Exchange and for over-the-counter trading in the United States, one of the sources said.
Canadian investment bank Canaccord Genuity (CF.TO) has been tapped for the offering expected as the lead underwriter. Other major investors and financial institutions are expected to come onboard in the coming weeks as the deal evolves.
New York Cannabis Legalization
New York became the 16th state in the US to legalize recreational marijuana in March 2021. Since then companies have been racing to secure a position in a market expected to be among the world’s biggest.
Cronos Group (NASDAQ: CRON) secured a 10.5% stake in PharmaCann in a deal that totaled $110.4 million earlier this June. The valuation in that acquisition valued PharmaCann at $1.1 billion with the upcoming IPO at an even higher valuation according to sources.
PharmaCann currently operates four medical cannabis retail dispensaries along with a cultivation facility in New York, submitted paperwork for its IPO to U.S. and Canadian regulators during the past 30 to 45 days, two of the sources said.
PharmaCann rival Ascend (OTCMKTS: AAWH) listed in May 2021. Shares have rose 38% since listing obtaining a of $1.9 billion market value for the company.
PharmaCann has received multiple takeover offers in the last few months, including from blank-check firms, the sources added. Despite the confidential filing, PharmaCann could still decide to scrap the IPO and stay private or take a different route to go public, sources also said.
PharmaCann originally agreed to a take over by New York based MedMen Enterprises (OTCMKTS: MMNFF) in 2018 for a deal nearing $700 million, however the deal fell apart as it was coming together.
