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 12/01/2023
Week ended 12/01/2023
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M&A Transactions Commentary
Week ended 12/01/2023
- The Most Interesting M&A Deal of the Week:
- On December 1, 2023, Canopy Growth Corp. (WEED: TSX)(CGC: Nasdaq), the third largest Canadian L.P. by market cap, closed on the sale of substantially all of the assets of BioSteel Canada to Coachwood Group and substantially all of the assets of BioSteel Manufacturing, LLC to another group for combined proceeds of $22.4M (CDN$30.4M)
- Proceeds will be used to reduce debt
- The transactions were approved by the Ontario Supreme Court of Justice
- CGC originally spent Cdn$50M for approximately 72% of Biosteel in 2019.
- The equity market reacted positively to the sale, placing CGC on this week’s top ten gainers list. However, we believe the savings in interest expense from the debt reduction makes very little difference to Canopy’s long-term survivability. Eliminating Biosteel does bring the company closer to EBITDA breakeven. Consensus estimates don’t have the company achieving that goal until the September 2024 quarter.
Week ended 12/01/2023
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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.