OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Equity Capital Raises
Equity Transaction Chart
Viridian publishes weekly data on equity capital raises in the Cannabis/CBD/Psychedelic industries. This data includes information about the company issuing equity (public/private, state/country location), deal size, deal structure, pricing, share information, deal implied valuation, and warrant information.
Week ended 10/14/2022
Week ended 10/14/2022
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Equity Commentary
Week ended 10/14/2022
The Week’s Largest Closed Equity Transaction:
- On October 11, 2022, Neptune Wellness Solutions (NEPT: Nasdaq) closed a combined offering of commons shares and warrants for gross proceeds of $6M
- NEPT sold 3.2M shares at $1.87 with an accompanying 6.4M warrants with strike prices of $1.62 (a 13% discount) and a 5-year maturity.
- The extended maturity and discount strike of the warrants gave them a value of approximately $.70 per share, reducing the net share value to about 38% below pre-announcement trading levels.
- The offering imputes an enterprise value of $21M and an EV/ 2022 consensus revenue of .43x, below the bottom quartile of .9x of the nine Canadian Infused Products & Extracts companies in the Viridian Capital Value Tracker. Having divested its cannabis operations, Neptune is increasingly focused on Food and nutraceuticals, differentiating it from the majority of entrants in the grouping.
- Proceeds will fund working capital and general corporate purposes.
Public Company Raises:
- Two of the three companies that raised capital this week were public. Both trade in the U.S. (one on Nasdaq and one on OTCQX), and one trades in Canada on the TSX.
Equity vs. Debt Cap Raises:
- Equity accounted for 19.5% of this week’s capital raises.
Week ended 10/14/2022
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Weekly Valuation Tracker
Viridian highlights a specific industry sector and provides a deep dive into valuation metrics and comparable company valuations for public companies operating in that sector. The Weekly Valuation Tracker provides proprietary, actionable valuation data.
- Week ended 10/14/2022
This week’s valuation tracker focuses on the 7 U.S. MSOs with market cap over $500M in the Viridian Value Tracker database in gauge the valuation impact of the 2nd earnings that have been released so far, Green Thumb (GTII: CSE), Curaleaf (CURA: CSE), and Trulieve.
- Week ended 10/14/2022
This Chart is Only Available to Higher Tier Memberships
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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 equity capital raises in the Cannabis/CBD/Psychedelic industries. These insights typically highlight the most interesting/meaningful equity transactions of that week, and commentary on market conditions, equity deal structures and investor groups.