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Hemp maker-backed blank-check firm looks to raise $100 mln in IPO

Nov 18 (Reuters) - Adara Acquisition Corp, a blank-check firm sponsored by hemp producer cbdMD Inc and private equity firm Blystone Donaldson, on Wednesday filed paperwork for a $100 million initial public offering on the New York Stock Exchange.

Adara aims to sell 10 million units at $10 apiece and expects to apply for the ticker symbol 'ADRA.U', it said in a filing here with the U.S. securities and exchange commission.

A blank-check firm, also known as a special purpose acquisition company (SPAC), is a shell company that uses proceeds from an IPO to buy a private company, typically within two years. The private company is then taken public.

SPACs have emerged as a popular IPO alternative for companies this year, providing a path to going public with less regulatory scrutiny.

In line with the normal practice, Adara did not specify what company it planned to buy with the proceeds from the IPO, but said it would focus on consumer products deals or eventually pursue a deal in another industry.

A number of cannabis industry veterans, including Bruce Linton, the former chief executive officer of Canopy Growth Corp , have formed SPACs this year and are on the hunt for companies to buy after a boom in sales due to pandemic-related demand for weed products and anticipation of U.S. decriminalization. (Reporting by Shariq Khan in Bengaluru; Editing by Amy Caren Daniel)

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