This is the primary installment of a brand new weekly collection from Marijuana Business Daily and Viridian Capital Advisors.
Each week, we’ll give you the newest knowledge on hashish funding exercise and M&A, together with key takeaways, evaluation and developments based mostly on current market strikes.
The knowledge under, offered by Viridian Capital Advisors, is thru the week ended Sept. 7, 2018.
Capital raises key takeaways:
- Aurora Cannabis closed its beforehand introduced mortgage for 150 million Canadian dollars ($115.four million) and CA$50 million ($38.four million) revolving credit score facility with Bank of Montreal, a deal that underscores the growing curiosity in hashish from mainstream banks and confidence that the nation’s licensed producers can help giant debt service and principal reimbursement.
- After its preliminary public providing on the Canadian Securities Exchange, Charlotte’s Web Holdings accomplished a personal placement value CA$5.6 million ($four.three million). The deal highlights the elevated curiosity amongst buyers and capital markets in branded product companies. The commoditization of flower and declining wholesale flower costs is spurring growers to give attention to manufacturers to each maintain worth and revenue margins and encourage shopper model loyalty. “Brand rollups now entering the marketplace as the multistate license rollup platforms are attracting significant capital and valuations,” stated Scott Greiper, president of Viridian Capital Advisors.
- California marijuana cultivator Canndescent accomplished a $13 million Series C Convertible funding spherical, additional proof that “California remains an attractive target market as legal supply chain continues to develop,” Greiper added.
M&A key takeaways:
- MedMen accomplished its acquisition of Florida licenses from Treadwell, proof that “Florida remains an attractive medical market due to large population and high numbers of physicians and senior citizens,” Greiper stated.
- Aphria accomplished its divestiture of Liberty Health Sciences, a deal that highlights the lingering regulatory points for Canadian corporations that record on the Toronto Stock Exchange and the TSX Venture Exchange, which have threatened to delist companies with U.S. hashish belongings given the plant’s federally unlawful standing within the United States.
- Canopy Growth accomplished its beforehand introduced acquisition of Hiku (previously Tokyo Smoke), underscoring “the emergence of brands as an attractive asset class within the cannabis industry,” Greiper famous.
Viridian Capital Advisors is a monetary and strategic advisory agency that gives funding banking, M&A, company improvement and investor relations providers to rising progress corporations and certified buyers within the hashish sector.