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 03/08/2024
Week ended 03/08/2024
Debt Commentary
Week ended 03/08/2024
- Debt accounted for 29% of trailing 8-week capital raises, down another eight 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 Most Significant Closed Debt Transactions
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- On March 4, 2024, BetterLife Pharma (BETR: CSE)(BETRF: OTCQB), a $7M market cap biotech company engaged in developing compounds to treat mental disorders, raised $47,924 in an unusual Convertible Note transaction.
- The notes bear interest at 10% and mature on 2/28/26.
- The notes are convertible at $0.0737 (5.3% premium) into units composed of one common share and one warrant with a $.0737 exercise price and a maturity of 2/28/26. You got that right: convertibles, which convert into shares and more warrants. It would be even more fun if the warrants, in turn, converted into shares and still more warrants!
- We view this structure as essentially equivalent to having an additional 100% warrant coverage on the original convert. The low premium would make this a juicy deal on its own, but adding in the additional warrants raises this to an effective cost of 36.1%. It’s pretty expensive money, but since it’s only for $50k, it doesn’t change the financial complexion of the company.
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Week ended 03/08/2024
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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 03/08/2024
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 03/08/2024
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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.