Special purpose acquisition companies-better known by the acronym SPACs-are an increasingly popular way for cannabis and mainstream companies to quickly launch on a stock exchange. SPACs, so-called blankcheck companies, can bring a cannabis business public quicker and cheaper than going through a traditional IPO process. Here are some things to keep in mind if you are considering merging with a SPAC: * U.S. plant-touching companies are not permitted to trade on the New York Stock Exchange or the Nasdaq. Instead, they likely will trade on the NEO exchange in Canada. * Make sure your financial house is in order. A potential SPAC partner will want to see audited financial results, likely going back three years or more. * It's important that your company boasts a crackerjack management team. More than anything, SPAC sponsors are investing in the people running the company. * Come in with a growth plan. SPAC sponsors want to see a concise, innovative plan about how your company will provide value to sponsors and shareholders. * Make sure potential SPAC sponsors understand the marijuana business and can assist your company's growth by providing advice on gaining market share or through future acquisitions. February 2021 | mjbizdaily.com 55http://www.mjbizdaily.com