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 10/06/2023
Week ended 10/06/2023
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Equity Commentary
Week ended 10/06/2023
- The Week’s Largest Closed Equity Deal
- On October 3, 2023, Aurora Cannabis. (ACB: Nasdaq)(ACB: TSX), the fifth largest Canadian LP by market cap, closed a bought deal offering of 53.2m common shares at $.53 for total gross proceeds of $28.3M, including the full exercise of the over-by the underwriter Canaccord Genuity
- The transaction increased the share count by 11.75% and was priced at a 20.6% discount to pre-announcement levels.
- The deal implies a $269M market cap and an EV/2023 Rev and EV/2023 EBITDA of .89x and 17.10x, respectively, significant premiums to the medians of .56x and 3.8x respectively, for the six LPs with market caps over $100M.
- Despite continued negative cash flow from operations, Aurora’s credit stats do not look bad. Its proforma free cash flow adjusted current ratio is 2.18x, showing good liquidity, and its proforma debt/market cap is only .44x, both better than the peer group.
- The proceeds from the issue are to repay the $25M remaining convertible notes at or before maturity.
Public vs. Private Raises:
- All four capital raisers this week were public companies. All trade in Canada (three on the TSX and one on CSE) and three trade in the U.S. (two on OTC and one on Nasdaq).
Equity vs. Debt Cap Raises:
- Equity accounted for 97% of the week’s capital raised.
Week ended 10/06/2023
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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 10/06/2023
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 10/06/2023
This Chart is Only Available to Higher Tier Memberships
Please Purchase a Premium or Enterprise membership to see more.
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.