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 07/28/2023
Week ended 07/28/2023
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M&A Transactions Commentary
Week ended 07/28/2023
- The Largest M&A Deals of the Week:
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- On July 24, 2023, Aurora Cannabis (ACB: Nasdaq)(ACB: TSX), the sixth largest Canadian LP by market cap, announced it had closed the sale of its Aurora Sun Facility in Medicine Hat, Alberta to Bevo Farms Ltd. (Private).
- The sale was completed via Bevo Farms’ acquisition of one of Aurora’s wholly owned subsidiaries.
- Aurora has a controlling interest in Bevo, one of North America’s largest suppliers of propagated vegetables and ornamental plants.
- The transaction will relieve Aurora of about $2M per year of carrying costs on the idle facility. Bevo will also pay an additional $15M over time, contingent on meeting certain financial milestones. The transaction recoups a minor amount of the more than CA$250M Aurora spent on the construction of the facility, according to a 2022 MJBiz article.
- The chart below shows the Viridian Capital Advisors Credit Tracker ranking for the 9 Canadian cannabis companies with market caps over $50M. Aurora ranks second to the worst, only slightly better than Canopy Growth (CGC: Nasdaq). The company has closed a significant portion of its capacity but is still expected to have negative cash flow from operations for the fiscal years ending 3/31/23 and 3/31/24.
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Week ended 07/28/2023
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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.