New cannabis company files for $50 million IPO
A company that aims to acquire cannabis-related businesses has filed for an IPO that could be worth up to $50 million, according to the US Securities and Exchange Commission. MTech Acquisition Corp. is an Orlando-based company that has already invested more than $30 million in cannabis-related businesses, and they believe the industry is still "undercapitalized," according to a statement in the registration. "Companies operating across multiple vertical consistently have trouble accessing capital from traditional resources," says the statement.
There's not too many conclusions that can actually be drawn about MTech here, other than they are convinced that there's plenty about the cannabis industry that they want to invest in. Still, this is just another piece of information in a growing trend, and shows that some investors are believing the analysts when they say that cannabis is going to get big. The market is already $6 billion, but given the legal questions around it, it sounds like business are still having trouble getting the support they need. Still, analysts are saying the market could eventually go up to $30 billion or more, so even if the market grows by half that, there's a whole lot of money yet to come.
We'll see if MTech's filing comes through. The filing also says that MTech wants to invest in "ancillary cannabis businesses," so they're just looking to invest in firms that work adjacent to cannabis (like, say, an up-and-coming cannabis lifestyle blog). That means that as much as MTech wants to invest, there's likely going to be even more activity around the drug itself, especially as the legal concerns get ironed out.