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 07/28/2023

Week ended 07/28/2023

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M&A Transactions Commentary

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.

Week ended 07/28/2023

  • The Largest M&A Deals of the Week:
      • On July 24, 2023, Aurora Cannabis (ACB: Nasdaq)(ACB: TSX), the sixth largest Canadian LP by market cap, announced it had closed the sale of its Aurora Sun Facility in Medicine Hat, Alberta to Bevo Farms Ltd. (Private).
      • The sale was completed via Bevo Farms’ acquisition of one of Aurora’s wholly owned subsidiaries.
      • Aurora has a controlling interest in Bevo, one of North America’s largest suppliers of propagated vegetables and ornamental plants.
      • The transaction will relieve Aurora of about $2M per year of carrying costs on the idle facility. Bevo will also pay an additional $15M over time, contingent on meeting certain financial milestones. The transaction recoups a minor amount of the more than CA$250M Aurora spent on the construction of the facility, according to a 2022 MJBiz article.
      • The chart below shows the Viridian Capital Advisors Credit Tracker ranking for the 9 Canadian cannabis companies with market caps over $50M. Aurora ranks second to the worst, only slightly better than Canopy Growth (CGC: Nasdaq). The company has closed a significant portion of its capacity but is still expected to have negative cash flow from operations for the fiscal years ending 3/31/23 and 3/31/24.

Week ended 07/28/2023

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