Cannabis Deal Tracker
Investment And M&Amp;A Activity In The Cannabis Industry October 7 - 11, 2019
October 17, 2019 (Investorideas.com Newswire)
- Integrated CBD, one of the larger providers of hemp and CBD in the U.S., raised more than $50 million between two tranches, a senior secured debt raise and a Series A financing. In its release, Integrated CBD announced the senior debt round was led by a multi-billion-dollar hedge fund in New York City, signifying the continued interest of institutional investors in the burgeoning hemp/CBD space and the cannabis industry as a whole. However, given the federal illegality of cannabis and THC products, these institutions are currently limited to investing in only a subset of the subsectors of the cannabis industry.
- Viola, a California-based producer of various cannabis products led by NBA veteran and cannabis advocate, Al Harrington, announced the closing of a $16-million funding round led by Gotham Green Partners. California operators continue raising capital given the significant market opportunity in the state. Additionally, branded product companies such as Viola with product distribution to multiple states are becoming more attractive to investors given brands' potential to mitigate pricing compression as the industry matures and competition increases.
- MediPharm Labs, a licensed producer in Canada specializing in cannabis extraction, expanded and drew down upon its credit facility to accelerate infrastructure development in Canada and Australia. Particularly, it is ramping its development in Canada to prepare for the coming launch of infused products in the Canadian adult-use market.
MERGERS & ACQUISITIONS:
- Cresco Labs, one of the largest multi-state operators in the U.S., acquired Gloucester Street Capital, the parent entity of Valley Agriceuticals, one of only 10 cannabis licensees in the state of New York. Operators continue to acquire licensees in limited license states, and New York's low count of just 10 licensees, combined with its significant population size, yields more favorable supply/demand dynamics for these operators. Additionally, New York has announced its intentions to legalize adult-use cannabis, the passage of which would further increase the market potential.
- Fire & Flower, a cannabis retailer in Canada, announced the closing of an acquisition of eight cannabis retail store locations from Cannabis Cowboy Inc. Since the launch of Canada's adult-use market, we have seen more licensees specialize on a single portion of the value chain, in this case retail. We expect further specialization towards product creation as infused products are introduced to the Canadian market.
The Viridian Cannabis Deal Tracker is an information service that monitors capital raise and M&A activity in the legal cannabis industry.
Analyzing within 12 key industry sectors, the Viridian Cannabis Deal Tracker provides cannabis companies, investors, and acquirers with the data, trends, and intelligence they need to make informed decisions regarding deal valuations, terms, and structures.
Since its inception, the Viridian Cannabis Deal Tracker has tracked and analyzed more than 2,400 capital raises totaling over $29 billion as well as more than 800 M&A transactions.
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 or may make purchases and/or sales from time to time. Viridian Capital Advisors, through broker-dealer services provided by Bradley Woods & Co. Ltd., (Member FINRA/SIPC), may act, or may have acted in the past, as a financial advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.
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 Bradley Woods & Co. Ltd. (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.
Marijuana remains illegal under federal law. The Federal Government does not recognize marijuana to have any medicinal values. Marijuana cultivation, possession, consumption, sales, and distribution are illegal under federal laws and also certain state laws. Investors in Cannabis may be subject to law enforcement actions. Please note that there are differences in marijuana laws from one state, county, or city to another. Furthermore there are substantial risks associated with investing in Cannabis companies, including, without limitation, changes in applicable laws, rules, and regulations, risks associated with the economic environment, the financing markets, and risks associated with the Company’s ability to execute on its business plan.
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