OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
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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 06/16/2023
We have commented previously about the significant percentage of U.S. Cultivators with unsustainable leverage. Focusing on the global cultivation & retail sector is even more alarming. While the median total liabilities to market cap of the 96 sector members is only 2.39x, the top quartile is now over 8.44x, which suggests financial distress. Around 24 companies in the global sector (mainly in Canada and the U.S.) will potentially have to restructure their obligations or pursue highly dilutive equity issuance.
Week ended 06/16/2023
We have commented previously about the significant percentage of U.S. Cultivators with unsustainable leverage. Focusing on the global cultivation & retail sector is even more alarming. While the median total liabilities to market cap of the 96 sector members is only 2.39x, the top quartile is now over 8.44x, which suggests financial distress. Around 24 companies in the global sector (mainly in Canada and the U.S.) will potentially have to restructure their obligations or pursue highly dilutive equity issuance.
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