This weekly collection from Marijuana Business Daily and Viridian Capital Advisors offers the newest knowledge on cannabis funding exercise and M&A, together with key takeaways, evaluation and tendencies based mostly on current market strikes.
The knowledge under, offered by Viridian Capital Advisors, is thru the week ended Nov. 30.
Capital raises key takeaways:
- Chicago-based Cresco Labs (CSE: CL) accomplished a increase value 107.three million Canadian dollars ($80.9 million) via a brokered personal placement as a part of its reverse takeover and public inventory itemizing on the Canadian Securities Exchange. The deal is yet one more instance of U.S.-based multistate operators turning to Canada’s capital markets to increase cash to continue scaling up their operations, stated Harrison Phillips, vice chairman of Viridian. “Companies continue to rapidly seek scale and are mostly raising outside capital to do so – as opposed to funds generated from operations,” he stated.
- Cura Partners, an Oregon-based extracts agency, closed a $75 million personal placement that included buyers from throughout a number of nations. The deal marks “one of the largest raises” inked amongst branded product cannabis corporations, Phillips stated. “It shows there is global interest in this space – and that the larger-scale operators in the U.S. are able increasingly able to attract more capital.”
Merger & acquisition key takeaways:
- Three U.S. based mostly firms – Cresco Labs, Colorado-based Dixie Brands and California-based DionyMed Holdings – accomplished reverse takeovers as a part of their public listings on the Canadian Securities Exchange. “As the investor focus shifts from Canada to the U.S., multistate operators and branded firms are leading this activity – and we expect to see more of this as we head into the new year,” Phillips stated.
- Canadian cannabis agency Canopy Growth closed its acquisition of Ebbu – an infused merchandise agency targeted on crafting cannabis merchandise aimed toward delivering sure results or moods resembling happiness or sleepiness. “We’ve really seen this trend picking up recently among consumers seeking out particular effects rather than strains of cannabis,” Phillips stated. “Once the infused product market opens up in 2019 in Canada, there will be a push to create products that are consistent, and this type of (intellectual property) will be key to driving those efficiencies.”
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 cannabis sector.