Viridian Cannabis Deal Tracker Chart Of The Week
Recovery in Cannabis Stocks Drive M&A Activity in Cultivation & Retail Sector
September 14, 2020 (Investorideas.com Newswire)
- Of the twelve industry sectors that we track, Cultivation & Retail has been the leading sector for M&A activity since we began collecting data in 2015, both in terms of buyers and sellers. However, transaction volume fell sharply with the decline in cannabis stock prices during the 2nd half of 2019.
- We began to see an uptick in M&A activity within the Cultivation & Retail sector commensurate with the recovery of cannabis stock prices in late March/early April. The recovery gained momentum through the end of August.
- This is due to the fact that the publicly-traded Multi-State Operators (MSOs), which have been the primary acquirers in the last four years as they expand into new states, are once again able to use their stock as part of the total consideration paid for these acquisitions.
- SPAC activity and new state adult legalization initiatives are likely to further boost M&A activity in the 3rd and 4th quarter of 2020 and into 2021.
The Viridian Cannabis Deal Tracker is a proprietary information service that monitors capital raise and M&A activity in the legal cannabis and hemp industry. Each week the Tracker aggregates and analyzed all closed deals and segments each according to key metrics:
- Industry Sector (one of 12 sectors, from Cultivation to Brands)
- Dollar value of the transaction
- Region in which the deal occurred (country or U.S. state)
- Status of the company announcing the transaction (Public vs. Private)
- Deal structure (equity vs. debt)
- Key deal terms
The Viridian Cannabis Deal Tracker provides the market intelligence that cannabis companies, investors, and acquirers utilize to make informed decisions regarding capital allocation and M&A strategy.
Since its inception in 2015, the Viridian Cannabis Deal Tracker has tracked and analyzed more than 2,500 capital raises and 1,000 M&A transactions totaling over $50 billion in aggregate value.
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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, M&Amp;Amp;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&Amp;Amp;A services 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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