CBD executive backs $100 million blank-check IPO effort

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The co-CEO of North Carolina CBD maker cbdMD Inc. is among those seeking $100 million through an IPO for a blank-check company that will invest in consumer goods.

The new blank-check company, to be called Adara, does not mention cannabinoid products in its filing this week with the U.S. Securities and Exchange Commission. Instead the company says it plans to invest in “companies in the consumer products industry and related sectors.”

One of Adara’s backers is Martin A. Sumichrast, who is co-CEO and chiarman of the board for cbdMD, which is based in Charlotte, North Carolina, and makes and distributes CBD products. Other backers include a private-equity firm in Charlotte, Blystone & Donaldson.

The Adara filing is just the latest in a flurry of cannabis-related blank check or special purpose acquisition companies – better known as SPACs.

Cannabis-related blank-check IPOs raised more than $2.6 billion last year and more than $700 million through the first half of 2020, according to Viridian Capital Advisors.

Those included Collective Growth Corp., a hemp blank-check company that opened on the Nasdaq in May with a full suite of investors that exceeded its goal of $175 million.

cbdMD Inc. trades on the NYSE as CBDMD. Adara asks to be traded on the NYSE.