OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Debt Capital Raises
Debt Transaction Chart
Viridian publishes weekly data and analysis on debt capital raises in the Cannabis/CBD/Psychedelic industries. This data includes information about the company issuing debt (public/private, state/country location), deal size, deal structure, pricing, warrants, and credit data.
Week ended 01/05/2024
Week ended 01/05/2024
Debt Commentary
Week ended 01/05/2024
- Debt accounted for 52% of trailing 8-week capital raises, up from last week. The ratio may stay lower than trend line levels if companies utilize favorable regulatory news to issue equity.
- The Week’s Largest Closed Debt Transaction
- On December 18, 2023, Better Life Pharma Inc. (BETR: CSE)(BETRF: OTCQB), a Biotech company engaged in the development of compounds for the treatment of mental disorders, closed a $0.23M non-brokered private placement of convertible units.
- The debt carries a 10% coupon and a two-year maturity
- The conversion price of $0.08 represents a 25.2% premium to the closing share price.
- The effective cost of the transaction is 15.39%, calculating the value of the conversion option as an OID.
- Although BETR has relatively low leverage, it continues to have strained liquidity. Proforma for this issue and the equity issuance from two weeks ago, the company has a free cash flow adjusted current ratio of -.12, indicating a short-term need for additional financing.
Week ended 01/05/2024
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Weekly Credit Tracker
Each week, Viridian highlights a specific industry sector and provides a deep dive into credit metrics and comparable company credit rankings for public companies operating in that 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 01/05/2024
This week’s credit tracker focuses on the 7 Canadian Cultivation & Retail sector companies with market caps between $50M and $500M in the Viridian Value Tracker database in order to make the case that Auxly had a good reason to sell assets, even at prices significantly below its cost: The firm is over levered and needs to sell assets to reduce debt. The Viridian Credit tracker ranking system shows Auxly near the bottom of the peer group in terms of credit quality.
- Week ended 01/05/2024
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Additional content is available to Premium and Enterprise users. Please purchase a higher tier membership to see more.
This Chart is Only Available to Higher Tier Memberships
Please Purchase a Premium or Enterprise membership to see more.
Viridian publishes weekly insights on debt capital raises in the Cannabis/CBD/Psychedelic industries. These insights typically highlight the most interesting/meaningful debt transactions of that week, and commentary on market conditions, debt deal structures, and lenders.