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 03/29/2024

Week ended 03/29/2024

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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 03/29/2024

  • The Week’s Closed Equity Deals
    • On March 29, 2024, OrganiGram (OGI: TSX)(OGI: Nasdaq) closed a public offering of units for gross proceeds of $18.40M.
    • The company sold 8.9M units for $2.39 per unit.
    • Each unit included one common share and one-half of a common share purchase warrant exercisable for four years at an exercise price of $2.686 (a 12.4% premium)
    • The warrants are worth approximately $.30 per unit, giving a net share price of $2.09, a 17.1% discount from the preannouncement level.
    • The transaction implies a market cap and enterprise value of $206M and $152M, respectively. The implied 1.28x E.V./ 2023 revenue exceeds the median of .74x for the 11 Canadian cultivation & retail companies with market caps over $25M. However, the market-to-book of 1.06x is directly on the median for the group. Organigram’s low profitability inflates its EV/EBITDA ratio, making it noncomparable to the group.

Public vs. Private Raises: 

  • Two of the week’s capital raisers are public companies. One trades in Canada on the TSX, and both trade in the U.S. on the Nasdaq.

Equity vs. Debt Cap Raises: 

  • Equity accounted for 45.5% of this week’s funds raised.

Week ended 03/29/2024

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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.