Weekly Credit Tracker
Credit ratings are not currently available for public cannabis companies leaving companies, lenders and investors with a gap of information. The Viridian Cannabis Credit Tracker fills this gap. The model uses 11 market and financial statement variables to discern 4 key credit factors: Liquidity, Leverage, Profitability, and Size, to provide credit/liquidity analysis for over 370 public Cannabis/Hemp companies.
Weekly Credit Report – Mispricing Opportunities in Cannabis Debt
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- The chart below shows our October 3, 2025, credit rankings of the top 25 U.S. Cultivation and Retail operators.
- The rankings are created by using 11 market and financial statement ratios to discern four fundamental credit factors: Liquidity, Leverage, Profitability, and Size. The factor rankings are synthesized into an overall credit score and credit rank.
- The model currently suggests several mispricings that are relatively large.
- For example, we note that the new five-year Cresco loan is quoted at over 400 basis points higher than the recently placed Vireo loan, despite Vireo being rated only one notch better.
- Similarly, Verano debt maturing in 2026 carries a 200-basis-point higher yield than Trulieve’s 2026 paper. We do rank Trulieve as a better credit, but 200 bps seems excessive. Moreover, this week’s $75M Chicago Atlantic revolver deal for Verano should significantly increase market confidence that CA will also refinance the remaining 2026 debt maturities.
- Should Cresco trade at equal yields to Ascend for similar maturities? Our model indicates that Cresco has significantly better credit, but market pricing does not reflect any difference.
- Investors should pay closer attention to the cannabis debt market. It generally offers hundreds of basis points of yield pickup compared to high-yield debt with similar credit metrics.
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Credit Tracker By Sector
Credit ratings are not currently available for public cannabis companies leaving companies, lenders and investors with a gap of information. The Viridian Cannabis Credit Tracker fills this gap. The model uses 11 market and financial statement variables to discern 4 key credit factors: Liquidity, Leverage, Profitability, and Size, to provide credit/liquidity analysis for over 370 public Cannabis/Hemp companies.
Weekly Sector Credit – Psychedelics with Improved Liquidity.
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- The table below shows the overall credit profile of the 18 Psychedelics companies currently in the Viridian Credit Tracker database.
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- Note that the median free cash flow-adjusted current ratio is now 1.10x, indicating that over half of the companies have sufficient liquidity to get through the next year without needing external funding. The lowest quartile of -0.16x continues to suggest that around four companies are experiencing severe liquidity stress. On the opposite end of the spectrum, the third quartile value of 2.67x denotes excellent liquidity and no operating needs for additional capital.
- The median total liabilities to market cap figure of 0.29 shows that the market believes the asset value coverage of half of the group is over 4 times.
- Finally, examining the group in terms of market capitalization reveals an enormous variation. Half of the companies in the sector have market caps under $10 million, while the top 25% of companies have market caps over $295 million, the largest spread among the twelve sectors we track.
Weekly Sector Credit – Psychedelics with Improved Liquidity.
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- The table below shows the overall credit profile of the 18 Psychedelics companies currently in the Viridian Credit Tracker database.
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- Note that the median free cash flow-adjusted current ratio is now 1.10x, indicating that over half of the companies have sufficient liquidity to get through the next year without needing external funding. The lowest quartile of -0.16x continues to suggest that around four companies are experiencing severe liquidity stress. On the opposite end of the spectrum, the third quartile value of 2.67x denotes excellent liquidity and no operating needs for additional capital.
- The median total liabilities to market cap figure of 0.29 shows that the market believes the asset value coverage of half of the group is over 4 times.
- Finally, examining the group in terms of market capitalization reveals an enormous variation. Half of the companies in the sector have market caps under $10 million, while the top 25% of companies have market caps over $295 million, the largest spread among the twelve sectors we track.