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 03/08/2024

Week ended 03/08/2024

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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 03/08/2024

  • The Week’s Closed Equity Deals
    • On 3/7/24, Planet 13 Holdings (PLTH: CSE)(PLNH: OTCQX) closed an equity unit transaction for gross proceeds of approximately $11.3M
    • The stock plunged by 21.5% in response to the pricing announcement and has continued to underperform the broader market.

    • The units were priced at $.6, including one share and one five-year warrant, with an exercise price of $.77 (28% premium).
    • The warrant premium seems reasonable, but the five-year maturity and whole warrant per unit are unusual.
    • It has become more common for these deals to include ½ warrant per unit and 2-3 years warrant terms.
    • The Black Scholes value of the warrant package is approximately $.146 per share, giving a net price of $.514 per share, about 28% below pre-announcement levels.
    • Pricing a deal with such generous terms suggests that the deal was not easy to sell.
    • The cannabis equity capital market has been frozen, awaiting a DEA announcement, and the PLTH transaction shows why. Pricing a deal before a potentially significant catalyst begs the question of why now?

Public vs. Private Raises: 

  • Both capital raisers this week are public companies that trade in Canada on the CSE and in the U.S. on OTC.

Equity vs. Debt Cap Raises: 

  • Equity accounted for nearly all of this week’s funds raised.

Week ended 03/08/2024

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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.