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 01/19/2024

Debt Commentary

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.

Week ended 01/19/2024

  • Debt accounted for 30% of trailing 8-week capital raises, down ten points from last week. The ratio may stay lower than trend line levels if companies utilize favorable regulatory news to issue equity.

 

 

  • The Week’s Only Closed Debt Transaction
    • On January 12, 2023, Agrify (AGFY: Nasdaq) closed on a restated and amended $3M Junior Secured Note issued by CEO Raymond Chang to replace maturing debt from unaffiliated lenders.
    • The new notes have a 10% coupon and mature on 12/31/25.
    • Agrify is a deeply troubled credit. Its free cash flow adjusted current ratio of -0.18 indicates a severe liquidity squeeze and the need for additional financing. Its Total liabilities to market cap of 27.6x reflects deep distress. The company has experienced seven consecutive quarters of negative cash flow from operations amid steadily declining revenues. As of its third quarter balance sheet, Agrify had only $158k of cash.

Week ended 01/19/2024

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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.

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. 

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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.