Today's Viridian #Cannabis Deal Tracker; Week Ending 4.21.2017
Viridian Capital Advisors (www.viridianca.com)
April 27, 2017 (Investorideas.com Newswire) Viridian Capital Advisors, LLC reports on its weekly Viridian Activity in the Cannabis Industry for the week ending April 21, 2017.
Summary for the Week Ended April 21, 2017
- Announcements: 20
- Capital Raises: 11
- M&A Transactions: 6
- Capital Raise and M&A Transaction: 1
- M&A and Going-Public Transaction: 1
- New Stock Listing: 1
- 7 capital raises closed this week for a total of $107.6 million ($15.4 million average) compared to 10 raises for a total of $1.5 million ($0.1 million average) this week last year.
- 3 M&A deals closed this week compared to 1 deals in the same week last year.
- We have tracked nearly $705 million in capital raises closed by companies engaged in the cannabis industry year-to-date, with the top sectors being:
- Biotech/Pharma: $296.8 million
- Cultivation & Retail: $235.7 million
- Consulting Services: $47.3 million
- THIRD WEEK YEAR-TO-DATE DURING WHICH OVER $100 MILLION WAS RAISED.
- Late-stage applicants in Health Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR) system have lately generated additional interest as investors and strategics due to their relatively lower valuations (compared to Canadian cannabis cultivators licensed under the ACMPR).
- M&A activity in Investments/M&A sector follows trend of accelerating M&A activity in overall cannabis sector:
- We tracked an average of 1.4 deals closed per week in the first three quarters of 2016 compared to 3.1 deals closed per week from the start of the fourth quarter of 2016 to date in 2017.
- Arena Pharmaceuticals, Inc. (NasdaqGS: ARNA), a biopharmaceutical company focused on developing novel, small molecule drugs with optimized receptor pharmacology designed to deliver broad clinical utility across multiple therapeutic areas, raised $69.0 million through an underwritten public offering of common stock. Arena anticipates using the net proceeds from the offering for clinical and preclinical development of drug candidates, for general corporate purposes, including working capital and costs associated with manufacturing services, and for capital expenditures.
- Arena Pharmaceuticals, Inc. (NasdaqGS: ARNA) also raised $10.4 million through the full exercise of the underwriters' option to purchase additional shares connected to its public offering of shares.
- Emerald Health Therapeutics, Inc. (TSXV: EMH), an ACMPR Licnensed Producer in Canada, raised C$24.4 million through a bought deal financing of units. Emerald intends to use the net proceeds of the Offering to accelerate facility expansion, to carry out research and development and for working capital and general corporate purposes.
- The Green Organic Dutchman Holdings Ltd., an ACMPR Licnensed Producer in Canada, raised C$28.4 million: C$22.0 through a non-brokered private placement of units that closed March 24, 2017, and C$6.4 million through a brokered private placement of units that closed April 19, 2017. The proceeds from the offering are expected to be used to fund expansion of production capacity, working capital, and for general corporate purposes.
- MJ Freeway, a leading provider of business management solutions and consulting services for the cannabis industry, raised $3 million in a Series B financing to use for continued market expansion.
- Emerald Health Therapeutics also raised C$2.8 million through the partial exercised of the underwriters' over-allotment option connected to its recent bought deal. These funds are intended to be used for general corporate purposes.
- Valens GroWorks Corp. (CSE: VGW) raised C$500,000 through the issuance of a convertible note. The note proceeds are expected to be used for meeting expansion obligations and for general corporate purposes.
Mergers & Acquisitions
- WeedMD Rx Inc., an ACMPR Licensed Producer in Canada, reverse merged with Aumento Capital V Corp. (TSXV: AMN.P), a capital pool company, to become a publicly traded company
- Easton Pharmaceuticals, Inc. (OTCPink: EAPH), a diversified specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries, acquired iBliss, Inc., a privately-held, Canada-based e-liquids and vaporizer manufacturer, and its holding company.
- South American Gold Corp. (OTCPink: SAGD), a company focused on the cannabis industry and lifestyle, acquired cNation, cNation, a cannabis focused social outlet.
Summary of Year-to-Date (YTD) Transactions
- We have tracked 117 capital raises totaling $705.0 million.
- Public versus Private:
- Public companies: 82 raises totaling $633.9 million
- Private companies: 35 raises totaling $71.0 million
- Equity versus Debt:
- Equity: 93 raises totaling $672.7 million
- Debt: 24 raises totaling $32.3 million
Mergers & Acquisitions
- We have tracked 47 M&A transactions.
- 41 deals by public companies
- 6 deals by private companies
- M&A activity in the Cultivation & Retail sector has been driven primarily by existing operators seeking strategic acquisitions and synergies to bolster their competitive positioning and increase market share.
- Late-stage applicants in Health Canada's ACMPR system have lately generated additional interest as investors and strategics due to their relatively lower valuations (compared to Canadian cannabis cultivators licensed under the ACMPR).
- M&A activity in Agriculture Technology sector points to continued development and implementation of more advanced growing technologies as cultivators seek to maximize efficiency and to lower costs amid pricing pressure.
- Activity in Investments/M&A sector follows trend of accelerating M&A activity in cannabis sector
- Average of 1.4 deals closed per week in first three quarters of 2016 compared to 3.1 deals closed per week from the start of the fourth quarter of 2016 to date in 2017.
Transactions by Sector for Week Ended April 21, 2017
Arena Pharmaceuticals Announces Pricing of Public Offering of Common Stock
Arena Pharmaceuticals Announces Completion of Public Offering of Common Stock and Exercise in Full of Underwriters' Option to Purchase Additional Shares
InMed Pharmaceuticals Announces Marketed Offering of Common Shares
Cultivation & Retail
The Green Organic Dutchman Holdings Ltd. Closing of C$28,350,567 Million Offering
Emerald Announces Closing of C$24.4 Million Bought Deal
Emerald Announces Partial Exercise of Over-Allotment Option in Connection with Recent C$24.4 Million Bought-Deal
Aphria Raises C$100 Million to Fund Continued Expansion of Production Capacity and Other Strategic Opportunities
Valens GroWorks Arranges Convertible Note Financing
High Hampton Announces Brokered Private Placement of up to C$5,000,000
Cannabis Software and Consulting Leader MJ Freeway Closes $3 Million in Series B Extension Investment
Platinex Inc. – Proposed Private Placement
Mergers & Acquisitions
Cannabis Science Continues Expansions as it Negotiates to Acquire Two Medical Marijuana Dispensaries in Los Angeles, California
Veritas Pharma Inc. Closes on its Acquisition of Cannevert Therapeutics Ltd.
Cultivation & Retail
CaliPharms Enters Acquisition Discussions with California Cannabis Retailers, Inc.
Infused Products & Extracts
Easton Pharmaceuticals Announces Signing of Purchase Agreement Completing the Acquisition of Revenue Producing Vaporizer and e-Liquids Manufacturer iBliss, Inc.
Marapharm Ventures Inc. Provides an Update of Operations in California and Announces an Acquisition of an Approved Conditional Use Permit for 24,193 sq. ft. of Cannabis Located in California
South American Gold Takes Control of cNation
Capital Raise and M&A Transaction
Invictus MD announces C$40,000,000 Bought Deal Private Placement of Convertible Debentures and Notice of Intention to Exercise Option on Acreage Pharms
M&A and Going-Public Transaction
Cultivation & Retail
WeedMD Inc. Announces Closing of Qualifying Transaction
New Stock Listing
Liberty Leaf Receives Approval for OTCQB Marketplace - Expands U.S. Investor Audience
To Learn More About the Viridian Cannabis Deal Tracker Contact:
The information contained herein is for informational purposes and is not intended as a research report. It should not be construed as Viridian recommending investment in cannabis companies or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in cannabis companies entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.
Viridian Capital Advisors and its affiliates, as well as their respective partners, directors, shareholders, and employees, may have a position in the securities mentioned herein and may make purchases and/or sales from time to time. Viridian Capital Advisors, through broker-dealer services provided by Pickwick Capital Partners, LLC, Member FINRA/SIPC, may act, or may have acted in the past, as a financial advisor for certain of the companies mentioned herein and may receive, and may have received, a remuneration for their services from those companies.
About the Viridian Cannabis Deal Tracker
The Viridian Cannabis Deal Tracker monitors capital raise, mergers & acquisition, joint venture, and licensing activity for both public and private companies in the legal cannabis industry across 12 key sectors, including Agriculture Technology, Biotech/Pharma, Consulting Services, Consumption Devices, Cultivation & Retail, Hemp, Investments/M&A (Holding Companies), Infused Products & Extracts, Miscellaneous Ancillary, Physical Security, Real Estate, and Software/Media.
Integrating more than 3 years of data collection, segmentation, and analysis, the Viridian Cannabis Deal Tracker supports decision-making by providing sector-specific actionable intelligence and trend analysis in regard to issuers, investors, acquirers, valuations, deal structures, and deal terms.
The above information whether in part or in its entirety neither constitutes an offer nor makes any recommendation to buy or sell any securities.
About Viridian Capital Advisors, LLC
Viridian Capital Advisors (www.viridianca.com) is a financial and strategic advisory firm dedicated to the cannabis market. We are a data- and market intelligence-driven firm that provides investment banking, M&A, corporate development, and investor relations services to emerging growth companies and qualified investors in the cannabis sector. Our banking practice, through broker-dealer Pickwick Capital Partners, LLC (Member FINRA/SIPC), provides capital and M&A to fund the growth of our clients, while our advisory practice helps to position and build their businesses. Our team's decades of high level operating and transactional experience on Wall Street in a variety of emerging sectors, allows Viridian to provide comprehensive strategic and financial solutions that assist cannabis enterprises in realizing their full potential.
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