Merida MCMJU = 1C, 1/2W
1 Warrant + $11.50
Term 24 months
Nov 7 , 2019 close.
Trust IPO $10.00 - $130,015,520 w/over
~ 13 million trust shares
Focus legal cannabis industry. However, we are not limited to this industry
Merida Capital Partners III LP, our sponsor, and its affiliated funds, which we collectively refer to as “Merida,” have worked diligently over the past 10 years to identify and complete transactions within the legal cannabis industry. Merida targets specific investments in the emerging cannabis industry as well as products and services associated with the evolution of cannabis as an agricultural product, a natural plant-based medicine, a constituent in pharmaceutical formulations, and an adult-use consumer product. It also has significant investments in companies that produce hemp-based Cannabidiol (“CBD”) products. CBD is one of the two most prevalent cannabinoids found in cannabis and hemp. Unlike tetrahydrocannabinol (“THC”), CBD is not responsible for the ‘high’ that is typically associated with cannabis use. The 2018 Farm Bill removed hemp (defined as cannabis with less than 0.3% THC content) from
the federal Controlled Substance Act. This means that products containing hemp derived CBD do not fall under the purview of the federal Controlled Substance Act. Our management believes that further liberalization of the laws relating to CBD could occur which would lead to an even more expanded legalized market. Management believes this eventually could lead to the cannabis/hemp market exceeding $25 billion of adult-use and medical sales by 2025 with an overall CAGR of approximately 17%, according to New Frontier Data.
In recent years, CBD has been studied and shown to be clinically effective for several orphan diseases and other afflictions — Epidiolex was recently approved by the FDA to treat Lennox-Gastaut syndrome and Dravet syndrome which are both rare & severe forms of epilepsy. Merida has invested in hemp/CBD businesses, such as Freedom Leaf, that grow and process hemp to create consumer packaged goods that rely on hemp derived CBD, or full spectrum hemp extract, as a major ingredient. Such products include: lotions/salves, soft-gel capsules, and tinctures. There are several other producers of such products in the US including: Charlotte’s Web, CV Sciences, and Elixinol Global.