Viridian Data Analytics
The Market Intelligence on Cannabis/CBD/Psychedelic Capital Raise and M&A Transactions Used by Companies, Investors, Acquirers and Advisors to Make Informed Capital Allocation and M&A Decisions.
Cannabis/CBD/Psychedelic Deals
Trailing Twelve Months
$1.64B
Equity Capital Raised
142
# Equity Transactions
$2.09B
Debt Capital Raised
102
# Debt Transactions
$3.66B
M&A Transaction Value
149
# M&A Transactions
Testimonials
“Viridian has collected and aggregated the world’s largest database of cannabis deals.” – Benzinga
“The Viridian team was by our side throughout the capital raise process and helped us source and negotiate the optimal debt financing. The market intelligence they gave us using information from the Viridian Cannabis Deal Tracker was instrumental in negotiating the best transaction.” – Ryan Jenneman, THC Design CEO
“We especially want to thank the team at Viridian Capital for their sage counsel on valuation and deal structures throughout the M&A process that helped guide us to a successful close.” — Jordan Weiss, CEO, Green Coast Hydroponics
Viridian Cannabis Deal Tracker
Launched in January 2015, and having analyzed more than $60B in deals, the Viridian Cannabis Deal Tracker is a proprietary data service that monitors and analyzes capital raise and M&A activity in the legal Cannabis/CBD/Psychedelics industries. Each week the Deal Tracker provides proprietary data and market intelligence on transactions, including:
- Deals by Industry Sector (to track the flow of capital and M&A deals by one of 12 Sectors - from cultivation to brands to software)
- Deal Structure (equity/debt for capital raises, cash/stock/earnout for M&A)
- Principals to the Transaction (issuer/investor/lender/acquirer)
- Key Deal Terms (deal size, valuation, pricing, warrants, cost of capital)
- Deals by Location of Issuer/Buyer/Seller (to track the flow of capital and M&A deals by state and country)
- Credit Analysis (leverage and liquidity ratios)
DETAILED DESCRIPTION OF DATA SERVICES
Equity Deals
Provides weekly data and insight into Cannabis/CBD/Psychedelic industries equity issuances
Debt Deals
Provides weekly data and insight into Cannabis/CBD/Psychedelic industries debt issuances
M&A Deals
Provides weekly data and insight into Cannabis/CBD/Psychedelic industries M&A deals.
Valuation Tracker
Provides valuation analysis for over 370 public Cannabis/CBD/Psychedelic companies.
Credit Tracker
Provides credit/liquidity analysis and rankings for over 370 public cannabis/CBD companies.
Industry Sector Tracker
Analyzes transactions by industry sector in order to track the flow of capital and M&A across 12 industry sectors – from cultivation to brands to software.
Regional Tracker
Analyzes deals by location of issuer/seller in order to track the flow of capital and M&A deals by state and country.
Chart of the Week
Provides insight on the most influential trends from the past week in the Cannabis/CBD/Psychedelic industries.
LATin america deal tracker
The Latin America Deal Tracker is a monthly report that includes all equity, debt, and M&A transactions that occurred in the region.
European
Deal Tracker
The European America Deal Tracker is a monthly report that includes all equity, debt, and M&A transactions that occurred in the region.
YTD Charts for Capital Raises
Consists of an overview of capital raise activity in the Cannabis/CBD/Psychedelic industries from the current year.
YTD Charts
for M&A
Consists of an overview of the M&A activity in the Cannabis/CBD/Psychedelic industries from the current year.
Viridian Capital Advisors Offers unique propriety data services including:
- Equity Deals
- Debt Deals
- M&A Deals
- Valuation Tracker
- Credit Tracker
- Sector Tracker
- Regional Tracker
- Special Reports
- Chart of the Week
- YTD Charts for Capital Raises
- YTD Charts for M&A
Examples of our data, analytics, and market intelligence
Equity Deal Tracker
The Equity Deal Tracker includes a weekly analysis of equity issuance. Data includes issuer specific information, deal size, pricing, share information, deal implied valuation information, and warrant information.
M&A Deal Tracker
The M&A Deal Tracker includes a weekly analysis of mergers & acquisitions in the cannabis industry. Weekly data on deals includes the acquiror and target information, deal size, type of deal, structure, and valuation information.
Credit Tracker
When it comes to credit ratings for Cannabis/CBD/Psychedelic companies, many investors, acquirers, and lenders have been left in the dark with a lack of information. With Viridian’s data and market intelligence, that is no longer the case. The Viridian Cannabis Credit Tracker is the first of its kind, providing users with a proprietary credit ranking system for companies based on a company’s liquidity, leverage, profitability, and size.
Viridian Cannabis Deal tracker for the week ended 3/17/23
Viridian Insights of the week
- The Silicone Valley Bank Failure seemed to appear in nearly every news story this week. We find it fascinating that with an inflation-pummeled consumer, a steepening downturn in housing, and the approach of what must be the most well-anticipated recession in history, what did in SVB had nothing to do with credit. Although the bank’s loan portfolio tilted towards riskier tech credits, by all measures, their loan loss reserves and loss experience were quite good. Indeed one might think they did the right thing by parking so much cash in “riskless” government bonds instead of extending more startup loans. They failed, however, because of factors in the graph below depicting the 3-month vs. 10-year treasury spread. We watch this spread versus the more commonly monitored 2–10 year spread precisely because it better mirrors the economics of bank lending and is a more accurate predictor of recessions.
- The inverted curve shows that the primary activity of borrowing short-term and lending long is unprofitable at times like now when the curve is steeply inverted. That might have weakened SVB over time, but it wouldn’t have killed it like the forces of a crowd stampede, and make no mistake about it, no bank can’t live through a run like SVB experienced.
- Why did it happen? Bank risk management was lacking in not having secondary sources of liquidity and locking up so much of its assets in low coupon high duration bonds. There also seems to be some guilt on the part of Peter Thiel, who loudly advised depositors to withdraw funds, apparently after his own Founder’s Fund had withdrawn all of its cash. There is blame to be shared by the large number of companies that maintained deposits greatly exceeding the FDIC limit. These companies were responsible for monitoring the health and risks of the institutions where they put cash. The fact that these depositors will be made whole strikes us as bad policy. Fundamentally, we doubt that such a small nonsystematic bank would have caused a cascade of other failures. We do, however, understand that it may be better to be safe than sorry.
- A more important question at this point is what this means for Fed policy toward rates and inflation. The curve above is now more inverted than it’s been in twenty years, signaling a high recession risk. So does the Fed bail on inflation? We think not. The Fed is after more than just simple inflation. It is trying to correct the all-asset bubble caused by a decade of zero-cost money, and we don’t think Jay Powell will back down that quickly. He may not do 50bp, but we think 25 is still in the cards and may not be the last raise. The market believes the Fed will pivot, so look for some ugly price action when it figures out it was wrong.
- Luckily, we see no direct impact on cannabis.
- TerrAscend (TER: CSE) announced that it would seek uplisting from the CSE to the TSX exchange. We had been waiting for a large US MSO to make this move since Canopy’s roll-up of its U.S. operations.
- It comes down to this: how do MSOs make their stocks more valuable? The SAFE Act doesn’t seem likely to happen. Margins continue to be compressed by wholesale price declines and inflationary cost increases. The capital markets are as tight as ever, making expansion funding difficult, if not uneconomic. Many, if not most, companies have laid off people and tightened their expenses. So what’s left? Greater stock liquidity! Institutional investors have stayed out of cannabis for many reasons: illegality, reputational risk, a horrendous period of declining prices, etc., but they are still on the sidelines looking. Cannabis stocks are also nearly uninvestable for prominent players due to their illiquidity. Imagine the impact on even the largest MSO if an institutional investor wanted to buy or sell $100M of stock. The TSX has multiples of the CSE’s trading volume, which will potentially get more institutions to invest in cannabis.
- So why not everyone jump into the pool? It’s not so easy!
- In 2017, the TSX issued a staff notice that listed issuers “with ongoing business activities that violate U.S. federal law regarding marijuana are not complying” with applicable listing requirements. Furthermore, the notice made it clear that “ongoing business activities” would be broadly interpreted.
- There may be ways to restructure the business that gets around these restrictions. One method involves creating a new listing company that only owns non-voting, non-participating shares of the plant-touching business that are exchangeable under certain conditions (like U.S. legalization) for ordinary shares. This avenue is what Canopy is pursuing.
- Despite the allure of uplisting, the process seems costly and potentially fraught with unintended consequences. For example, will these arrangements affect the attractiveness of the company’s stock as acquisition currency? Will it make the company less attractive as an acquisition target? What accounting or tax implications are there? It’s safe to say that only large companies are likely to burn the lawyer’s time to attempt this move soon. It will be fascinating to watch. Cynically speaking, maybe this is what it will take to get banking reform back on track.
Equity Deals For this week
This week there were two equity transactions, totaling to $8.33M. This was highlighted by PSYLO PTY (Private) closing a Seed Funding round for $5M.
Debt Deals For this week
This week there was one debt transaction, totaling $375.00M. This was highlighted by Verano Holdings (VRNO: CSE), the fourth largest U.S. MSO by market cap, completed a $350M refinancing of its existing credit line.
M&A Deals for this Week
This week there were three transactions, totaling $27.36M This was highlighted by High Tide Inc. (HITI: Nasdaq) confirmed that it had closed its previously announced acquisition of Jimmy’s Cannabis Shop BC. The purchase includes two retail locations in Prince George and Cranbrook, BC.
Viridian Valuation Tracker
This week’s valuation tracker focuses on the twenty-seven U.S. Cultivation & Retail companies in the Viridian Value Tracker database with market caps under $100M.
Viridian Credit Tracker
This week’s credit tracker focuses on the sixteen U.S. Cultivation & Retail sector companies in the Viridian Value Tracker database with market caps over $100M.
Viridian Sector Deal Tracker
This week’s Viridian Industry Sector Tracker highlights Psychedelics, an industry that has recently seen a rise in the total number of capital raises YTD.
Viridian Regional Deal Tracker
Illinois increased its hold as the third largest state for capital raises through the Verano $350M refinancing debt deal which is the largest debt YTD.
Latin america deal tracker
The Latin America Deal Tracker is a monthly report that includes all equity, debt, and M&A transactions that occurred in the region. The LATAM deal tracker also gives a transactions review and year over year trends.
European Deal Tracker
The Europe America Deal Tracker is a monthly report that includes all equity, debt, and M&A transactions that occurred in the region. The European Deal Tracker also gives a transactions review and year over year trends.
YTD Charts for Capital Raises
The YTD charts provide data and insights into the public vs. private capital raises for the current year, total number and dollar amount of capital raises each week, and capital raises by sector.
YTD Charts for M&A
The YTD charts provide data and insights into the public vs. private mergers & acquisitions for the current year, total number and transaction value of M&A deals by week, and M&A deals by sector.
Chart of the Week
The Viridian Capital Chart of the Week highlights key investment, valuation and M&A trends taken from that week’s Deal Tracker that we believe are impactful for investors, companies and acquirers.
