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

Capital Raises

Past Charts

Capital Raises

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:

  • YTD Analysis
  • Sector Focus
  • Capital Raises vs Equity Prices
  • Outlook
  • Sector and Company Performance
  • Capital Raises by Sector

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YTD Analysis

Week ended 04/22/2022

Transactional Activity

  • There were two more transactions and a $20.8 million higher volume than the prior week. Compared to last year’s same week, one fewer transaction closed, but volume was up by $33.9 million. The average deal size was $13.4 million this week vs. $6.7 million in the same week last year.

Cannabis capital raises are off 67% YTD:

  • Reduced equity issuance (down 74% y/o/y in the U.S. and 94% in Canada) was partially compensated for in the U.S. by solid debt issuance (up 386% y/o/y, however, Canada’s debt decline of 86% brought total debt issuance down by 17%. As the graph below shows, capital raises for the first fifteen weeks of 2022 were dominated by U.S. activity. More financing came from international locations than in any recent year’s corresponding period.

Market Commentary and Outlook

This Week Sector Focus

Capital Raises vs Stock Prices

  • We continue to see a growing percentage of total capital raised by public companies.

  • There were six closed capital raises for $80.6M this week, and there continues to be a dearth of large deals. By this time last year, there had been 16 equity transactions over $100m versus only one in 2022. The graph below shows the sea change in financing as debt (light green) replaced equity (dark green) as the market slid.

Best and Worst Stock Performers