SPAC offers update on marijuana acquisition

BOULDER — A special purpose acquisition company buying into the Northern Colorado market has updated  investors on multiple closings it expects this year and in early 2022.

Amityville, New York-based Greenrose Acquisition Corp (OTC: GNRS) is buying four companies in four states, including Futureworks LLC, which operates dispensaries in Boulder and Denver under the name The Health Center.

Greenrose projects 2022 revenue of the four combined companies at $260 million to $295 million with adjusted earnings before interest, taxes, depreciation, and amortization, of $110 million to $135 million. The four are currently in seven states in cultivation, processing, and dispensing.

The company’s investor presentation said “all businesses are in some stage of expansion” and each would grow in its own area to build a national industry player.

“Our post-business combination pipeline includes going deeper in the markets we’re already in, as well as looking selectively at new states where we can efficiently … buy profitable businesses.”

SPACs go public with investment capital but no operations until they buy firms. Greenrose is backed by Canada-based SunStream Bancorp and others, the presentation said.