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 73% of trailing 8-week capital raises. The ratio may go down if companies are able to utilize favorable regulatory-induced stock price increases to complete equity issues. However, equity pricing has remained stubbornly low while the cannabis debt capital markets have reopened.
- The Week’s Debt Transactions
- On April 9, 2025, Filament Health Corp (FH: Cboe)(FLHLF: OTC ), A $5M market cap psychedelics company with authorization to enter stage trials for a psilocybin-based drug for opioid use disorder, closed a private placement of convertible units for $0.68M
- The three-year maturity convertible notes carry a conversion price that is currently a 13% discount to the market price of the stock.
- Each unit includes approximately 50,000 warrants exercisable at a premium of roughly 30%. The warrant coverage is approximately 150%
- Between the discount conversion price and the high warrant coverage, the effective cost of the issue is approximately 40%.
- Filament will need more cash soon. The issue size is only enough to bring the company’s proforma current ratio to around 1x, and the company is burning through around $300,000 per quarter.
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.