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 74% 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
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- On March 3, 2025, Glass House Brands (GLAS.A: Cboe)(GLASF: OTCQX), the fifth largest U.S. cannabis company by market cap, closed a $50M Senior Secured Loan
- The loan matures on 1/31/30 and carries a fixed rate of 8.58%
- The loan features interest-only payments for the first three years, saving approximately $13M that would otherwise have gone to principal repayments.
- The loan is secured by a first-priority lien on the company’s Camarillo, Padar, and Casitas greenhouse farms and a first-priority lien on the rest of the company’s equipment, excluding other real estate.\\
- The loan contains two key covenants: 1) minimum liquidity of $10M and 2) a 1.25x fixed charge coverage ratio.
- GLASF will use approximately $41M to repay the balance of the previous loan
- GLASF improved by one notch to #8/31 on the Viridian Capital Credit Scoring Model.
- The company’s equity is currently trading at a hefty premium to all other competitors (see our four charts above), and it would make sense to issue equity to take out an expensive preferred. It would also make abundant sense for GLASF to make acquisitions using its stock for currency. When your stock is trading like GLASF, the only question should be, “How much would you like?”
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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.