OUR 8TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / CBD / PSYCHEDELIC SECTORS

Viridian Cannabis Deal Tracker

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

 
“We thank Scott Greiper and his team at Viridian Capital for their guidance and perseverance in completing our Series A and Series B financings.  The utilization of data from the Viridian Cannabis Deal Tracker guided us in understanding our value in the market and the optimal deal structure for our company.” – Morris Denton, Texas Original CEO

 

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:

DETAILED DESCRIPTION OF DATA SERVICES

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Equity Deals

Provides weekly data and insight into Cannabis/CBD/Psychedelic industries equity issuances

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Debt Deals

Provides weekly data and insight into Cannabis/CBD/Psychedelic industries debt issuances

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M&A Deals

Provides weekly data and insight into Cannabis/CBD/Psychedelic industries M&A deals.

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Valuation Tracker

Provides valuation analysis for over 370 public Cannabis/CBD/Psychedelic companies.

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Credit Tracker

Provides credit/liquidity analysis and rankings for over 370 public cannabis/CBD companies.

 

 

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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.

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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.



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Chart of the Week

Provides insight on the most influential trends from the past week in the Cannabis/CBD/Psychedelic industries.



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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.

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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.

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YTD Charts for Capital Raises

Consists of an overview of capital raise activity in the Cannabis/CBD/Psychedelic industries from the current year.


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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:

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.

Equity Capital Raises

Viridian publishes weekly data and insights on equity capital raises in the Cannabis/CBD/Psychedelic industries. This data includes information about the company issuing equity, deal size, pricing, share information, deal implied valuation, and warrants.

Debt Capital Raises

Viridian publishes weekly data and insights on debt capital raises in the Cannabis/CBD/Psychedelic industries. This data includes information about the company issuing debt, deal size, pricing, warrants, and credit data.

M&A Deals

Viridian publishes weekly data and insights on M&A in the Cannabis/CBD/Psychedelic industries. This data includes information about the acquiring company, type of deal, consideration, target company, and valuation metrics.

Viridian Cannabis Valuation Tracker

The Viridian Value Tracker is the most comprehensive valuation product in the industry.

  • A broad set of 12 valuation measures assures applicability, regardless of whether the company has analyst coverage or revenues.  The typically presented EV/ Projected Revenues and EV/ Projected EBITDA are available for less than 1/3 of cannabis companies we track.
  • Most valuation studies present only the average valuation measures, while the Tracker goes one step further and shows the distribution of values (the quartiles, median, and dispersion) for each measure. This gives users a more complete view of how companies in the cohort group are valued.

Viridian Credit Tracker

Credit ratings are not currently available for public cannabis companies leaving companies, lenders and investors with a gap of information. The Viridian Cannabis Credit Tracker fills this gap. The model uses 11 market and financial statement variables to discern 4 key credit factors: Liquidity, Leverage, Profitability, and Size, to provide credit/liquidity analysis for over 370 public Cannabis/Hemp companies.

Viridian Cannabis Sector Tracker Description

The Viridian Sector Tracker is the premier resource to follow the movement of capital and M&A by sector. Viridian Capital Advisors partitions the cannabis universe into 12 subsectors and each week we follow the transactions that occur in each of these subsectors, giving investors the ability to spot sector rotations early. 

Viridian Cannabis Regional Tracker Description

The Viridian Cannabis Regional Tracker is the premier resource to follow the movement of capital and M&A by location.

Cannabis industry capital raises and M&A activity are shifting. Newly legalized states in the Central and Northeast have become the focus of an increasing amount of capital deployment to fund new cultivation capacity and new dispensaries. MSOs are often finding it more advantageous to build scale in new states through acquisition rather than internal build, leading to a similar shift in M&A activity.

The Regional Tracker gives investors/sellers and acquisitors being targeted a clear view of where capital is being allocated.

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. 

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

The YTD Charts for Capital Raises includes a detailed breakdown of capital raises in the cannabis industry year to date. Charts include a breakdown between Public and Private Capital raises, Equity & Debt raises, and Capital raises by sector.

YTD CHARTS FOR M&A​

Year to Date Charts for M&A includes a detailed breakdown of Mergers and Acquisitions for the current year. Charts break deal data between public and private deal makers and sectors.