OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
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Chart of the Week
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.
Week ended 03/07/2025
Viridian Capital Chart of the Week: Which Sectors Had Increased Capital Raises in the LTM Ended 3/7/25
- Remarkably, despite regulatory frustrations, ongoing wholesale price compression, slowing growth, and all-time low stock prices, worldwide cannabis capital raises are up 45.9% at $2.33B for the LTM ended 3/7/25 compared to the year-earlier period.
- The Chart of the Week displays the capital raised by the top ten sectors in LTM 3/25 in green and the corresponding year-earlier figures in bronze.
- Six of the ten sectors on the chart had increases ranging from 12% for Consumption Devices to 150% for Real estate. Some of the noteworthy drivers of sector gains include:
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- Cultivation and Retail, the largest sector accounting for about 62% of all capital raised, was up 76% to $1.44B, primarily due to four significant new issues. Three of them were debt refinancings, including $215M for Ascend Wellness (AAHW: OTCQX), $150M for Green Thumb (GTII: CSE), and $140M for TerrAscend (TSND: TSX). The $82M private placement of equity for Vireo Growth was the most significant equity raise for a U.S. Cultivator since May 2021.
- Investments/M&A was up 109% to $216M, mainly due to the $212.5M IPO of Mercer Park Opportunities (SPAC: TSX), the first cannabis SPAC IPO for several years.
- The Real Estate sector was up 150% to $150M, solely due to two debt raises by Chicago Atlantic.
- Ag Tech was up 353% to $40M, primarily due to around $35M raised by Agrify (AGFY: Nasdaq)
- The U.S. accounted for 77% of capital raised in the LTM period, up from 51% in the previous period.
- It is encouraging to see increased raises in the midst of monumental industry uncertainty. But make no mistake, the capital crisis is still in effect. LTM raises of $2.34B are a far cry from 2022’s $4.32B, let alone 2021’s figure of $12.57B. But at least things are moving in the right direction.
