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 08/11/2023

We continue to be concerned about the critically weak liquidity in the psychedelics sector. The median current ratio of the 25 companies in the sector is a deceptively strong 3.41x; however, the industry is heavily negative cash flow from operations, funding operating costs, and the costs of clinical trials. Considering this, the median free cash flow adjusted current ratio is -0.59x, indicating severe liquidity stress. The 1st quartile figure of -1.51x is the lowest among the 12 sectors we track. Only the top eight companies will be fully funded through the following year.

Week ended 08/11/2023

We continue to be concerned about the critically weak liquidity in the psychedelics sector. The median current ratio of the 25 companies in the sector is a deceptively strong 3.41x; however, the industry is heavily negative cash flow from operations, funding operating costs, and the costs of clinical trials. Considering this, the median free cash flow adjusted current ratio is -0.59x, indicating severe liquidity stress. The 1st quartile figure of -1.51x is the lowest among the 12 sectors we track. Only the top eight companies will be fully funded through the following year.

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