OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
M&A Transactions
M&A Transaction Chart
Viridian publishes weekly data on M&A transactions in the Cannabis/CBD/Psychedelic industries. This data includes information about the buyer and seller (public/private, state/country location), deal size, deal structure (cash, stock, earn-out), pricing, share information, and deal implied valuation.
Week ended 01/19/2024
Week ended 01/19/2024
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M&A Transactions Commentary
Week ended 01/19/2024
- The Largest M&A Deal of the Week:
- On January 15, 2024, Red White & Bloom (RWB: CSE), a $21M market cap MSO with investments in Arizona, California, Florida, Massachusetts, Missouri, Michigan, and Ohio, announced the closing of its previously announced purchase of the Aleafia Group of companies under proceedings of Canadian Bankruptcy (CCAA).
- The total consideration of $23.67M consisted of releasing all amounts outstanding ($18.61M) under the Aleafia Senior Secured Loan Agreement and the DIP financing and $5.06M in cash.
- Assets gained in the acquisition include:
- An 86-acre, low-cost outdoor cultivation site in Port Perry, Ontario, with a capacity of over 66k pounds per year.
- A 65k sq foot EU-GMP cultivation, processing, and packaging facility located in Paris, Ontario.
- A 9.4% interest in One Plant (Retail), which operates a network of over 40 corporately owned and franchised cannabis retail locations in Ontario.
- RWB ranks as #25/30 in terms of credit quality in the Viridian Credit Tracker credit scoring model, and we are a bit skeptical of a highly levered U.S. MSO with limited liquidity and three consecutive years of negative cash flow from operations acquiring a bankrupt Canadian company.
- RWB anticipates annual synergies of around $9M from the acquisition.
Week ended 01/19/2024
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Viridian publishes weekly insights on the M&A landscape in the Cannabis/CBD/Psychedelic industries. These insights typically highlight the most interesting/meaningful M&A transactions for that week, and commentary on market conditions, M&A deal structures, target regions for acquirers, and industry sectors ripe for consolidation.