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 06/30/2023
We continue to be concerned about the liquidity in the Psychedelics sector. Only 10 of the 26 companies in the sector have free cash flow adjusted current ratios over 1x, and 21 companies have negative measures indicating severe liquidity stress. With the significant increase in stock valuations over the last week and median market-to-book ratios now over 1x, we are looking to see a considerable number of equity capital raises in the sector. It is no secret that the sector has heavily negative cash flow from operations as they fund r&d with little to no revenues. Will the equity capital market step up to keep these companies afloat?
Week ended 06/30/2023
We continue to be concerned about the liquidity in the Psychedelics sector. Only 10 of the 26 companies in the sector have free cash flow adjusted current ratios over 1x, and 21 companies have negative measures indicating severe liquidity stress. With the significant increase in stock valuations over the last week and median market-to-book ratios now over 1x, we are looking to see a considerable number of equity capital raises in the sector. It is no secret that the sector has heavily negative cash flow from operations as they fund r&d with little to no revenues. Will the equity capital market step up to keep these companies afloat?
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