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 10/28/2022
Week ended 10/28/2022
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M&A Transactions Commentary
Week ended 10/28/2022
The Most Interesting M&A Deal of the Week:
- On October 25, 2022, High Tide Inc. (HITI: Nasdaq) confirmed that it had closed its previously announced acquisition of Jimmy’s Cannabis Shop BC. The purchase includes two retail locations in Prince George and Cranbrook, BC.
- The consideration of CDN$5.3M was all paid in common shares of High Tide.
- The acquired operations had annualized revenues and EBITDA of C$5.4M and C$1.0M, respectively, producing transaction multiples of 1.0x revenues and 5.3x EBITDA.
- Jimmy’s is significantly more profitable than High Tide, with EBITDA margins of approximately 18.5% versus consensus 2022 estimates for High Tide of 3.9%.
- The table below shows that the transaction should be modestly accretive to High Tide for EBITDA per share on a 2022 proforma basis.
Week ended 10/28/2022
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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.