Despite Recent 7-Figure Raises, Cannabis Investments Remain Slow In 2020

The Viridian Cannabis Deal Tracker is an information service that monitors capital raise and M&A activity in the legal cannabis industry. Each week the Tracker analyzes/aggregates all closed deals and allocates each transaction to one of twelve key industry sectors in which the deal occurred (from Cultivation to Brands), the region in which the deal occurred (country or U.S. state), the status of the company announcing the transaction (public vs. private) and the type of deal structure (equity vs. debt).

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. 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 $45 billion in aggregate value. Find it exclusively on Benzinga Cannabis every week!

INVESTMENT AND M&A ACTIVITY IN THE CANNABIS INDUSTRY

8/10/2020 – 8/14/2020

CAPITAL RAISES

  • Transactional Activity: Week 33 ended August 14, 2020, saw a 158% higher dollar volume with two fewer transactions vs. the prior week of this year and a sharply lower dollar volume and number of transactions vs the prior-year period. We recorded 6 capital raise transactions totaling $51.8 million, vs 8 transactions totaling $417.1 million during the same week in 2019. The average tranche size was $8.6 million this week, vs. $ 52.1 million in the prior-year period. Last year’s totals were skewed by the $350 million Bespoke Capital SPAC IPO.
  • Largest Cap Raise: On August 13, Hexo Corp. (TSX: HEXO) (NYSE: HEXO), completed its C$34.5 million (US$25.5 million) at the market equity program, selling 33.9 million shares between June 18, 2020, and July 31, 2020, at average prices of approximately US$0.75 per share. The large Canadian LP stocks have performed particularly badly in 2020 relative to their US counterparts, declining approximately 40% YTD compared to a gain of approximately 23% for an index that includes U.S. companies. Hexo is down 49.7%, worse than all other LPs except Aurora (down …

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