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 08/23/2024
Week ended 08/23/2024
Debt Commentary
Week ended 08/23/2024
- Debt accounted for 64% 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.
- The Week’s Debt Transactions
- On August 19, 2024, AFC Gamma (AFCG: Nasdaq) announced that it had increased its loan commitments to two cannabis cultivation and retail sector companies and closed a new facility to a third company:
- BeLeaf, an integrated cannabis company operating in Missouri, received an additional $5.5M commitment under its AFC facility, bringing the total commitment to $26.1M
- The additional funding will be used to partially finance the acquisition of two dispensaries in Missouri.
- AFC stated that the terms of the facility will remain consistent with BeLeaf’s existing facility. Those terms appear to coincide with a listing in AFC’s 10Q of a $21M commitment to private company “J” with rates set at 12.5% over SOFR with an additional PIK interest of 2%.
- Liens on both cultivation facilities and dispensaries secure the facility.
- Sunburn Cannabis, an integrated Florida operator, received an additional $1.8 million commitment under a facility that now totals $36.5 million.
- The additional funds will partially finance Sunburn’s buildout of two new dispensaries and additional low-cost cultivation capacity in Florida.
- AFC’s original two facilities were extended to Sunburn in March 2024
- Private company “Q,” an integrated Georgia operator, received $4.3M in funding under a senior secured credit facility.
- Funds will be used towards the buildout of a cultivation and processing facility and to establish two new dispensary locations in Georgia.
- On August 19, 2024, AFC Gamma (AFCG: Nasdaq) announced that it had increased its loan commitments to two cannabis cultivation and retail sector companies and closed a new facility to a third company:
Week ended 08/23/2024
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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 08/23/2024
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 08/23/2024
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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.