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 08/18/2023
Week ended 08/18/2023
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Equity Commentary
Week ended 08/18/2023
The Week’s Largest Closed Equity Transaction:
- On August 8, 2023, InnoCan Pharma Corp (INNO: CSE)(INNPF: OTCQB), an Israeli firm that focuses on the development of several drug delivery platforms combining cannabidiol (“CBD”) with other pharmaceutical ingredients as well as the development and sale of CBD-integrated pharmaceutical
- On August 16, 2023, Compass Pathways (CMPS: Nasdaq) completed a private placement of units for gross proceeds of $125M.
- Compass sold 16.1M units at $7.775 per unit. Each unit included one common share and one warrant with a three-year life and exercise price of $9.93 (approximately 30% premium)
- The warrant package is worth approximately $1.23 per unit, resulting in a net share price of $6.54, a 14.3% discount to the preannouncement share level.
- The transaction implies a market cap of approximately $404.7M and an enterprise value of $159.5M. Most importantly, the proforma free cash flow adjusted current ratio is 17.3x, which validates management’s claims that the financing fully finances the company through 2025. Compass has extremely low leverage, with a debt/market cap of only .08x.
- Proceeds will allow Compass to advance its Phase 3 program in treatment-resistant depression, its ongoing Phase two trials in anorexia nervosa and post-traumatic stress disorder, its development of digital technologies to complement and augment its therapies and research, and general corporate purposes.
- TCGX and Aisling Capital led the deal with participation from new and existing institutional investors, including Vivo Capital, RA Capital, Surveyor Capital (a Citadel company), Paradigm BioCapital Advisors LP, Soleus Capital, Armistice Capital, Logos Capital, PFM Health Sciences and Laurion Capital Management
- Morgan Stanley and TD Cowen acted as placement agents.
Public vs. Private Raises:
- All three companies that raised capital this week are public—two trade in the U.S. on Nasdaq, and one trades in Canada on the CSE.
Equity vs. Debt Cap Raises:
- Equity accounted for 89.3% of this week’s raises.
Week ended 08/18/2023
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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 08/18/2023
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 08/18/2023
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.