Marijuana businesses have raised hundreds of millions of dollars in recent months, a trend that is expected to continue as an investment dry spell that began late last year appears to be easing.
Over the past year the cannabis sector experienced its first sustained contraction in capital markets transactions and capital availability. Here are the numbers according to the Viridian Cannabis Deal Tracker. In 2019 the number of capital raises declined by 12.6% and the total capital raised fell by 17.8%. So far in 2020, the decline has been even more significant. Through the first 8 months of 2020, the number of capital raises fell by 52.5% and the total dollars raised compared to the same period in 2019.
The Federal Trade Commission and the U.S. Department of Justice (DOJ) Antitrust Division have taken great interest in recent cannabis deals—especially blockbuster transactions along the lines of acquisition of Cannabis is still illegal, but the feds are beginning to enforce their rules.
The Viridian Cannabis Deal Tracker* provides the deal data/terms/valuations/structures and market intelligence that cannabis companies, investors, and acquirers utilize to make informed decisions regarding capital and M&A strategy.
Week 32: August 3rd, 2020 - August 7th, 2020
Marijuana stocks rode highs from late 2017 to 2018, as investors sought to enter the budding business that was emerging from prohibition as states relaxed their laws. But the market tumbled over the past year as that optimism faded amid challenges that include a patchwork of state regulations and no access to traditional banking services.
The Viridian Cannabis Deal Tracker* provides the deal data/terms/valuations/structures and market intelligence that cannabis companies, investors, and acquirers utilize to make informed decisions regarding capital and M&A strategy.
Week 29: July 13th, 2020 - July 17th, 2020
The Viridian Cannabis Deal Tracker* provides the deal data/terms/valuations/structures and market intelligence that cannabis companies, investors, and acquirers utilize to make informed decisions regarding capital and M&A strategy.
Week 25: June 15th, 2020 - June 19th, 2020
For the first time in 2020 we saw more dollars raised and a higher average tranche size than in the same week during 2019.
With over $2.5 billion raised by SPACs in the cannabis industry, there is more buying power in the market that is fueling new M&A activity.
It’s no secret that the legal cannabis industry has been taking it on the chin lately, with stock prices falling after years of very high valuations, almost never justified by companies’ fundamentals.
The Viridian Cannabis Deal Tracker* provides the deal data/terms/valuations/structures and market intelligence that cannabis companies, investors, and acquirers utilize to make informed decisions regarding capital and M&A strategy.
Week 23: June 1st, 2020 - June 5th, 2020
It’s no secret that the legal cannabis industry has been taking it on the chin lately, with stock prices falling after years of very high valuations, almost never justified by companies’ fundamentals.
The cannabis sector has run into major liquidity issues with the lack of access to the banking system in the U.S. and market issues in Canada.
The struggling cannabis sector is likely to see a wave of large and mid-sized mergers in 2020 as growth capital goes up in smoke, stock prices decline and producers report lower-than-expected sales, industry executives say.
With the cannabis industry reeling from a series of setbacks over the last six months, the marijuana business conference began in Las Vegas on Monday with an investors’ meet-up marked by existential distress.
Dealmaking has gone quiet in the marijuana space as the slump in shares removes a vital currency and investors get picky.
Canopy Growth on Thursday launched a cannabis wellness company with rapper Drake, the latest weed-related tie-up with a celebrity, even as investor sentiment sours on the industry.
With pot illegal federally in the U.S., many companies in the industry struggled to find landlords willing to rent space and ended up owning property.
The North American Marijuana Index, which tracks the leading cannabis stocks in the U.S. and Canada, has fallen more than 52% in the past 12 months.
Amid the recent volatility in pot stocks, there is one group that appears to be capitalizing on the cannabis industry: the banks advising on a flourishing deal market for these companies.
Constellation Brands’ multibillion-dollar wager on Canopy Growth is huge – record setting even – but a much larger story is lighting up across the cannabis industry: Wall Street has arrived.
In an IPO, companies sell shares to the public via a stockbroker. In an RTO, a business buys enough shares to control a publicly traded “shell,” then exchanges shares in its private company for shares in that shell.
The series, called CFN Media & Viridian's Cannabis Capital Markets Wrap, will be filmed at CFN Media's Los Angeles studios and feature the President of Viridian Capital, Scott Greiper, recounting the previous month's activity and trends in the cannabis markets.
Short sellers are betting heavily against the rapidly growing marijuana sector, especially the stocks of major players in the Canadian cannabis industry.
The start to 2019 looks to be much more promising for the cannabis industry than last year. If you'll recall 2018 began with then Attorney General Jeff Sessions rescinding the Cole Memorandum.
The 2018 Farm Bill Trump signed earlier this month allows for hemp cultivation and the transfer of hemp-derived products across state lines for commercial or other purposes.
Cannabis-related companies raised nearly $13.8 billion so far this year, compared to just $3.5 billion in 2017, according to data from Viridian Capital Advisors, a financial and strategic advisory firm for the cannabis industry.
*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. Please note that there are differences in marijuana laws from one state, county, or city to another.
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