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 05/02/2025
Week ended 05/02/2025
Debt Commentary
Week ended 05/02/2025
- Debt accounted for 65% 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
- Advanced Flower Capital (AFCG: Nasdaq), a leading commercial mortgage REIT that provides institutional loans to cannabis operators, renewed its senior secured revolving credit facility with a commitment from a $75B FDIC-insured commercial bank.
- The three-year facility, with an initial draw of $40M, can expand to $100M, subject to lender participation and borrowing base availability.
- The loan is priced at prime plus 0.5%, subject to a prime floor of 6.50%
- Proceeds will fund unfunded commitments to existing borrowers and the origination of new loans.
- The chart below indicates that AFCG got excellent terms on this loan. The chart shows that the company trades at the lowest market/book (blue bar) ratio of the four competitors, implying questions about mark-to-market on AFCG’s assets. AFCG has the highest leverage of the group based on the total liabilities to assets ratio (orange bar), and it has the lowest annualized funds from operation to assets ratio, implying generally lower profitability than the group.
Week ended 05/02/2025
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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 05/02/2025
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 05/02/2025
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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.