Investment Firm Uses SPACs to ‘Bet Big’ on Pot Companies

Michael Auerbach said he “made a big bet on cannabis” when he launched investment firm Subversive Capital seven years ago.

That bet appears to now be paying off.

Subversive, which focuses on real estate investments, has emerged this year as a major investor for the cannabis industry, thanks in large part to its use of Special Purpose Acquisition Companies (SPACs), publicly traded firms established strictly for raising capital to acquire other companies.

SPACs, which are also referred to as blank-check companies, are gaining in popularity . . .