Calgary’s Trail Blazing Ventures (TSXV: BLAZ.P), a capital pool company, and HEMPALTA have announced the closing of a private placement financing to raise $1.1 million. The funding will enable the companies to combine and pursue a TSX Venture Exchange listing.
HEMPALTA was included on Calgary.tech’s watchlist of startups for 2023.
Investors in the financing will become shareholders in the newly combined company – which will continue with the HEMPALTA name and use the ticker symbol HEMP – once it becomes public. Approval of the combination still relies on approval from existing shareholders of TBV and HEMPALTA.
HEMPALTA is an agricultural technology company focused on harnessing the immense potential of industrial hemp. The company contends it is revolutionizing the hemp industry through its advanced and highly scalable agricultural processing technology, as well as the monetization of industrial hemp carbon removal credits through the global voluntary carbon market. In 2023, the company partnered with Hemp Carbon Standard to enter the carbon credit market space.
Capital pool companies can be effective for a startup like HEMPALTA to go public without committing to a lengthy IPO process. That said, going public is not typical in the tech space as it’s a more advanced funding option usually reserved for larger, more mature companies.
By going public, HEMPALTA can further fuel its growth and invest in its operations. Proceeds from the financing are expected to be used in part to expand HEMPALTA’s Calgary-based hemp processing plant.
Trading in TBV shares is halted while the companies finalize the combination. The new company will begin trading on the TSX Venture Exchange with the HEMP ticker symbol once the company meets exchange requirements and receives all necessary approvals.
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