A new investor group plans to set-up a blank-check firm that’ll concentrate on hemp-derived consumer products.
Ackrell SPAC Partners I Co. recently entered into the bandwagon of marijuana-associated blank-check efforts. On Tuesday, it filed plans with America’s Securities and Exchange Commission (SEC) and is set to trading on Nasdaq.
The investors disclosed to SEC that they venture into quick-moving consumer products and have found opportunities in the hemp sector, specifically wellness commodities and beverages.
In its filing, Ackrell asserted that their administration team believes hemp-related products have the capacity for worldwide mass consumer demand. It added that customers are starting to use hemp-related products in treating multiple medical issues such as insomnia, inflammation, pain, and anxiety.
The Ackrell group consists of CEO Roth Jason, previous Mile High Labs’ CEO, a Colorado-located cannabidiol extractor, and a private supplier.
Ackrell’s deputy chairman Soqui Shannon was formerly the leader of America’s cannabis investment. The Ackrell filing is the most recent in a flood of marijuana-related SPAC (special purpose acquisition companies).
Based on data from Viridian Capital Advisors, Marijuana-based blank-check IPOS accumulated over USD2.6 billion in 2019 and over USD700 million during this year’s first half.
In 2018, many conventional livestock farmers and row-crop farmers were affected by the plummeting trade tariffs and prices in the already unconducive margins. They opted for hemp cultivation in 2019 with the belief of reaping profits due to the increased demand for hemp-based CBD.
In some reports, hemp farmers demonstrated median returns of up to USD15,000 per acre during 2018.
Despite hemp’s legality and ongoing bids from legislators to open financing and banking services for hemp producers and CBD businesses as a legal agricultural sector, hemp businesses and farmers are still constrained by the lack of funds to launch and maintain operations.
According to Lerner Julie, CEO and founder of the PanXchange hemp trading platform, the capital inadequacy extends throughout the supply chain and will consequently affect growers.