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 06/28/2024
Week ended 06/28/2024
Debt Commentary
Week ended 06/28/2024
- Debt accounted for 86% of trailing 8-week capital raises, up sharply from last week. The ratio may go down if companies are able to utilize favorable regulatory-induced stock price increases to complete equity issues.
- The Week’s Debt Transactions
- On June 25, 2024, The Sanity Group Gmbh (Private), a Berlin-based cannabis operator, closed a $14.9M funding from Organigram (OGI: Nasdaq), a $170M market cap Canadian L.P.
- The funding includes $12.2M of unsecured convertible notes with a 10% PIK interest. The conversion price will be calculated at a discount to Sanity’s subsequent qualified financing into its most senior class of equity.
- The remainder of the funding is a $2.66M equity interest purchased from Sanity shareholders, giving Organigram a minority stake in Sanity.
- Sanity distributes products to more than 2,000 pharmacies and works with roughly 5,000 physicians in Germany.
- Pursuant to the transaction, Organigram and Sanity expanded their supply agreement to increase production and commercialize Organigram’s brands in Germany.
Week ended 06/28/2024
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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 06/28/2024
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 06/28/2024
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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.