Capital Raises Summary
Each week, Viridian publishes insights and analysis on completed capital raise transactions in the prior week, focusing on all equity and debt deals. Our analysis includes:
- Summary
- Outlook
- Best & Worst Perfromers
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YTD Analysis
- YTD capital raises totaled $2,073.52M, up 13.7% from the same period in 2023. Debt as a percentage of capital raised dropped to 59.1% from 61.3% in the previous year on a worldwide basis. The U.S. bucked this trend with 71.4% of capital raised in debt compared to 57.6% in 2023.
- U.S. raises accounted for 70.7% of total funds, up from 52.8% at the same point in 2023. Raises from outside Canada and the U.S. represented 5.0% of the total funds raised, which is in line with the average of 5.7% for the six previous years but is sharply lower than the 10.7% achieved in 2023.
- YTD raises by public companies accounted for 76.6% of total funds, the highest since 2021.
- Cultivation and Retail Sector capital raises are up 182% YTD. Debt accounts for 98.2% of the $971.5M raised YTD, and around 70% of this is earmarked for refinancing existing debt. Large debt issues (>$100M) bounced back and represented 50.1% of capital raised compared to zero in 2023.
- Cannabis equities (as measured by the MSOS ETF) ended down 3.48% for the week, which is not much consolation after last week’s largest decline in the ETF’s history (since September 2020). The market was encouraged by the Matt Gaetz nomination for attorney general.
This weeks Sector Focus
Capital Raises vs Stock Prices
- Cannabis equities (as measured by the MSOS ETF) ended down 3.48% for the week, which is not much consolation after last week’s largest decline in the ETF’s history (since September 2020). The market was encouraged by the Matt Gaetz nomination for attorney general.
