OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
M&A Transactions
M&A Transaction Chart
Viridian publishes weekly data on M&A transactions in the Cannabis/CBD/Psychedelic industries. This data includes information about the buyer and seller (public/private, state/country location), deal size, deal structure (cash, stock, earn-out), pricing, share information, and deal implied valuation.
Week ended 08/23/2024
Week ended 08/23/2024
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M&A Transactions Commentary
Week ended 08/23/2024
- The Largest Closed M&A Deal of the Week:
- Verano is purchasing six dispensaries and one cultivation and production facility in Virginia. Verano will become the sole cannabis operator and retailer for the HAS 5 in Eastern Virginia. Cannabist (CBST: Cboe) will retain its assets in the Richmond region with five dispensaries and 80k square feet of cultivation and manufacturing space.
- The total transaction value for the Virginia assets is $90M: $20M in cash, $40M in Class A shares, and $30M in a seller note.
- Verano is also purchasing all of Cannabist’s assets in Arizona, including one cultivation facility, one production facility, and two dispensaries.
- The total transaction value for Arizona is $15M, payable in cash.
- We are not surprised that Cannabist continues to sell assets. The company has weak liquidity and excess leverage. These transactions go a long way to repairing the company’s liquidity issue.
- We do not have enough information on the acquired properties to calculate purchase multiples. Still, as a whole, Verano is trading at around 5.66x 2024 EBITDA, which constrains the amount it can pay while keeping the transaction accretive.
- Granted, Cannabist may be a motivated seller, but Verano is using $40M of its stock in the deals at pre-S3 pop levels! Verano must feel it is getting a good enough deal to make up for potentially leaving some stock on the table.
Week ended 08/23/2024
This is the MA basic
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Viridian publishes weekly insights on the M&A landscape in the Cannabis/CBD/Psychedelic industries. These insights typically highlight the most interesting/meaningful M&A transactions for that week, and commentary on market conditions, M&A deal structures, target regions for acquirers, and industry sectors ripe for consolidation.