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 02/03/2023
Week ended 02/03/2023
Debt Commentary
Week ended 02/03/2023
- Debt accounted for 31% of trailing 4-week capital raises. We expect this ratio to be volatile because of the limited capital raise activity. Debt should average over 50% of capital raised, especially since many companies are trading at or close to their 52-week lows. We expect more companies to need to add equity kickers to their debt deals in the current capital-constrained environment.
The Week’s Largest Debt Raise:
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- On February 2, 2023, Irwin Naturals Inc. (IWIN: CSE)(IWINF: OTC), a $960M market cap distributor of branded vitamins, supplements, and CBD products, closed a closed a $40M bank credit facility that is potentially expandable up to $60M.
- The six-year facility was priced at prime +1%, which currently equates to 8.5%
- Proceeds will fund the expansion of a national psychedelic mental health clinic following its recently announced LOI to acquire Braxia Scientific, which provides ketamine and psilocybin treatments for mental disorders.
- We are not surprised by the aggressive pricing on the facility. The Viridian Credit Tracker model ranks Irwin Naturals as the best credit in its peer group of U.S. Hemp sector credits with market caps over $20M.
- On February 2, 2023, Irwin Naturals Inc. (IWIN: CSE)(IWINF: OTC), a $960M market cap distributor of branded vitamins, supplements, and CBD products, closed a closed a $40M bank credit facility that is potentially expandable up to $60M.
Week ended 02/03/2023
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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 02/03/2023
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 02/03/2023
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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.