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 03/07/2025
Week ended 03/07/2025
Debt Commentary
Week ended 03/07/2025
- Debt accounted for 74% of trailing 8-week capital raises. The ratio may go down if companies are able to utilize favorable regulatory-induced stock price increases to complete equity issues. However, equity pricing has remained stubbornly low while the cannabis debt capital markets have reopened.
- The Week’s Debt Transactions
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- On March 3, 2025, Glass House Brands (GLAS.A: Cboe)(GLASF: OTCQX), the fifth largest U.S. cannabis company by market cap, closed a $50M Senior Secured Loan
- The loan matures on 1/31/30 and carries a fixed rate of 8.58%
- The loan features interest-only payments for the first three years, saving approximately $13M that would otherwise have gone to principal repayments.
- The loan is secured by a first-priority lien on the company’s Camarillo, Padar, and Casitas greenhouse farms and a first-priority lien on the rest of the company’s equipment, excluding other real estate.\\
- The loan contains two key covenants: 1) minimum liquidity of $10M and 2) a 1.25x fixed charge coverage ratio.
- GLASF will use approximately $41M to repay the balance of the previous loan
- GLASF improved by one notch to #8/31 on the Viridian Capital Credit Scoring Model.
- The company’s equity is currently trading at a hefty premium to all other competitors (see our four charts above), and it would make sense to issue equity to take out an expensive preferred. It would also make abundant sense for GLASF to make acquisitions using its stock for currency. When your stock is trading like GLASF, the only question should be, “How much would you like?”
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Week ended 03/07/2025
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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 03/07/2025
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 03/07/2025
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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.