OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS

Credit Tracker By Industry Sector

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.

Week ended 12/16/2022

The Viridian Credit Tracker utilizes 11 different bespoke credit ratios to evaluate four aspects of credit quality: Liquidity, Leverage, Profitability, and Size. We are looking carefully at liquidity, given the challenging environment for capital raises. The median debt to market cap of the 103 Cultivation & Retail sector companies in our database is now 1.12x, up from 1.08x last week. More importantly, the 3rd quartile now registers 3.29x, above the 3x level we generally associate with stress/distress. This measure is a warning sign that a significant number of cultivation sector companies may require rescue financing or restructuring actions in 2023.

Week ended 12/16/2022

The Viridian Credit Tracker utilizes 11 different bespoke credit ratios to evaluate four aspects of credit quality: Liquidity, Leverage, Profitability, and Size. We are looking carefully at liquidity, given the challenging environment for capital raises. The median debt to market cap of the 103 Cultivation & Retail sector companies in our database is now 1.12x, up from 1.08x last week. More importantly, the 3rd quartile now registers 3.29x, above the 3x level we generally associate with stress/distress. This measure is a warning sign that a significant number of cultivation sector companies may require rescue financing or restructuring actions in 2023.

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