A team of well-known investors in the cannabis industry filed an S-1 preliminary prospectus to raise $50MM by selling 5mm units at $10.00. Each unit consists of one share and 1/2 a warrant at $11.50. The company intends to be listed on the NASDAQ under the symbol MTECU, with the expectation that the stock (MTEC) and warrants (MTECW) will trade separately. EarlyBirdCapital, the sole underwriter that stands to earn $1.25mm in fees, has an option to purchase up to 750K additional units. If so, the company will have 7.4125mm shares and 2.9875 million warrants outstanding.
The company, which is based in Orlando, Florida, intends to invest in only ancillary companies, not investing in direct cannabis producers or sellers, with a focus on compliance, business intelligence and brands and media. Steve Van Dyke, a Co-Founder and the Chairman of Hypur Ventures, serves as Chairman. Scott Sozio, who is also a Co-Founder and a Managing Director at Hypur Ventures, is the CEO, while Tahira Rehmatullah, a Managing Director of Hypur Ventures and formerly the General Manager of Marley Natural, owned by Privateer Holdings, is the CFO. Emily Paxhia of Poseidon Investment Management and Anthony Georgiadis, a Partner at Green Thumb Industries (GTI), will serve as independent Directors.