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 03/17/2023

Week ended 03/17/2023

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Equity Commentary

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.

Week ended 03/17/2023

The Week’s Largest Closed Equity Transaction:

  • On March 15, 2023, Zelira Therapeutics Ltd (ZLD: AUX)(ZLDAF: OTCQX), an Australian based Biotech company focused on R&D and development of cannabinoid medicines and product commercialization, raised $1.17M from U.S. Investors.
  • 77M shares were sold at $.66 per share, approximately a 3% discount to the 15-day VWAP and equal to the stock’s last closing price.
  • The issue implied a market cap and enterprise value of $47.6M and $46.5M, respectively. The company is pre-revenue and trades at approximately 2.0x book value, a metric that corresponds closely to the 2.09x market/book ratio we observe for the 9 Biotech companies in the Viridian Value Tracker database with market caps between $25-100 and annualized revenues less than $20M.
  • Proceeds will help fund the company’s clinical trial program. Zelira’s free cash flow adjusted current ratio of -4.4x indicates a significant need for additional financing, primarily due to its approximately $5M negative annualized cash flow from operations.

Public vs. Private Raises: 

  • Three of this week’s four capital-raising companies are public. All three trade in the U.S. on OTC. In addition, one trades on the Australian exchange, one on the London exchange, and one in Canada on the TSX.

Equity vs. Debt Cap Raises: 

  • Equity accounted for 41.9% of the capital raises this week.

Week ended 03/17/2023

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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.

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.   

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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.