Debt Transaction Chart
Viridian publishes weekly data and analysis on debt capital raises in the Cannabis/CBD/Psychedelic industries. This data includes information about the company issuing debt (public/private, state/country location), deal size, deal structure, pricing, warrants, and credit data.
Debt Commentary
- Debt accounted for 90% of trailing 8-week capital raises. The ratio may increase if companies can utilize favorable regulatory-induced stock price rises to complete equity issues. We believe that a successful move to S3 will increase the likelihood of other near-term regulatory moves, such as the SAFER or STATES. The real question is what kind of price increase will it take before cannabis companies are willing to issue equity? Will the change to S3 result in a lasting price pop that could lead to re-equitization?
- The Week’s Debt Transactions
- On September 22, 2025, Jushi Holdings (JUSH: CSE)(JUSHF: OTC), the tenth largest U.S. MSO by market cap, modified its secured bank loan with FVC Bank, increasing the line by $4M, extending the maturity to September 2030, and decreasing the rate floor from 8.25% to 7.50%
- The additional funds will be used for capex and working capital.
- The facility is clearly highly advantageous to Jushi, demonstrating confidence in the company’s financial flexibility.
- Still, with significant 2025 maturities approaching, we are looking for signs that the company will refinance or roll over its maturities. The 12.25% term loan due January 29, 2027, is quoted by Ventum Financial at approximately 84 on the offered side, yielding around 26%. That’s worse than our 16/25 credit ranking for the company would indicate, and bespeaks some uneasiness regarding refinancing. We believe the company has full asset value coverage of its liabilities and should be able to secure a deal. Of course, we always say that refinancing is part finance and part psychology. Some positive news on 280E would be most helpful, as, along with significant debt maturities, Jushi has larger uncertain tax liabilities relative to its market cap than any other MSO we track.
Viridian publishes weekly insights on debt capital raises in the Cannabis/CBD/Psychedelic industries. These insights typically highlight the most interesting/meaningful debt transactions of that week, and commentary on market conditions, debt deal structures, and lenders.