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 04/28/2023
Week ended 04/28/2023
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M&A Transactions Commentary
Week ended 04/28/2023
The Most Interesting Closed M&A Deal of the Week:
- On April 28, 2023, Ascend Wellness (AAWH.U: CSE)(AAWH: OTCQX), the ninth largest U.S. MSO by market cap, announced the closing of its purchase of four licensed dispensaries in Maryland from Devi Holdings Inc.
- Maryland is Ascend’s seventh state, along with Illinois, Michigan, Ohio, Massachusetts, New Jersey, and Pennsylvania.
- $4.67M (28%) of the total consideration of $16.67 was paid in stock, with the remainder of $12M in cash. The average percentage of stock used in cultivation & retail transactions YTD has been approximately 34%.
- Another Interesting M&A Deal
- On 4/25/23, Glass House Brands (GLASF: CSE), the eighth-largest cannabis company in the U.S. by market cap, closed its acquisition of the Natural Healing Center dispensary in Turlock, California
- Calculation and payment of the acquisition consideration will occur at the end of its sixth full calendar quarter of operations at 6x its annualized EBITDA in that quarter. Glass House will pay 80% in stock and 20% in an unsecured note with an 8% coupon and four-year maturity.
- A 6x multiple seems high but is consistent with our dcf valuation of a generic steady-state dispensary at about 1.2x revenues, assuming a 20% EBITDA margin.
Week ended 04/28/2023
This is the MA basic
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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.