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 05/19/2023
Week ended 05/19/2023
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Equity Commentary
Week ended 05/19/2023
The Week’s Largest Closed Equity Transaction:
- On May 15, 2023, Neptune Wellness (NEPT: Nasdaq), a competitor in the Nutraceuticals and Organic Foods markets, closed a $4M public units offering.
- The company sold 12.1M units at $0.33 per unit.
- Each unit consisted of one common share and 1 five year warrant exercisable at $.33 per share.
- We calculate the value of the warrant package at approximately $.11 per unit, bringing the net share price down to $.22, nearly on top of the pre-deal price.
- The transaction values Neptune at a market cap of $6.2M and EV of $17.1M. EV/ annualized revenues is.35x. 2023 EBITDA.
- Neptune’s valuation is challenged by its relatively low credit quality. With proforma Debt/ Mkt Cap of 3.0x and free cash flow adjusted current ratio of .28x, Neptune has significant liquidity issues that this week’s raise was not big enough to address. NEPT is projected to have negative cash flow from operations of approximately $9M for the year ended 3/24, and we expect NEPT to require additional financing during the year. With debt to a market cap of 3.0x, leverage is already on the cusp of our danger level.
Public vs. Private Raises:
- Two of this week’s four capital raisers are public companies. Both trades in Canada (one on the TSX and one on the CSE) and the U.S. (one on OTC and one on Nasdaq.)
Equity vs. Debt Cap Raises:
- Equity accounted for two of the week’s three capital raises and 57.9% of the funds.
Week ended 05/19/2023
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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 05/19/2023
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 05/19/2023
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.