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 09/12/2025
Week ended 09/12/2025
Debt Commentary
Week ended 09/12/2025
- Debt accounted for 86% 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. We believe that a successful move to S3 will increase the likelihood of other near-term regulatory moves, such as the SAFER or STATES. The real question is what kind of price increase will it take before cannabis companies are willing to issue equity? Will the change to S3 result in a lasting price pop that could lead to re-equitization?
- The Week’s Debt Transactions
- On September 12, 2025, Akanda Corp. (AKAN: Nasdaq), a UK-headquartered company that is engaged in the cultivation and processing of cannabis products at a facility in Lesotho, Africa, with an intent to sell medical-grade cannabis products to wholesalers, closed a private placement of a $12 million convertible promissory note with institutional investors.
- Proceeds will be used for the renewal and development of the company’s Gabriola, B.C. site ($3.5M), working capital and general corporate purposes (up to $3M), and debt repayment (up to $7M).
- Details regarding the conversion price, interest rate, or the term of note were not yet available.
- Akanda’s transaction implied debt/market cap of 3.91x is rather high, and the pro forma debt of $12M will require significantly higher revenue levels to support adequately. We will continue to research the terms of the debt to see if the effective cost is as high as the financial profile suggests.
- On September 12, 2025, Grown Rogue (GRIN: CSE)(GRUSF: OTC), a $130M market cap MSO with operations in Oregon, Michigan, New Jersey, and Illinois, announced an incremental $5 million in funding from a national FDIC-insured commercial bank, bringing the total of the company’s senior secured credit facility to $12 million.
- The rate on the four-year loan was an eye-popping 7.52%, the lowest funding rate we are aware of in the industry for a non-mortgage facility. The blended rate for the entire facility is now 7.84%.
- GRIN is tied with Verano as the 4th best credit in our rated universe, with the second-best leverage ranking, exceptional implied asset coverage of liabilities, and strong liquidity.
- We admire the company’s willingness to “stick to its knitting” by concentrating on growing high-quality craft cannabis at scale with amongst the lowest costs in the industry. GRIN’s addition of New Jersey is just beginning to earn the level of cash flow that we believe it is capable of. Grown Rogue cut its teeth on being a profitable cultivator in Oregon and Michigan. Need we say more?
Week ended 09/12/2025
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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 09/12/2025
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 09/12/2025
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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.