Cannabis Equity Raises Get Hot After Elections

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

11/9/2020 – 11/13/2020

CAPITAL RAISES

  • Transactional Activity: Week 46 ended November 13, 2020, saw a $54.8 million higher dollar volume and 2 more transactions vs. the prior week of this year and a 260% higher dollar volume with two more transactions vs the prior-year period. We tracked 5 capital raise transactions totaling $82.8 million, vs 3 transactions totaling $23.0 million during the same week in 2019. The average tranche size was $16.6 million this week, vs. $7.7 million in the prior-year period. 
  • Largest Cap Raise: On November 12, 2020, Organigram Holdings (NASDAQ: OGI) (TSX: OGI), the 8th largest Canadian LP by market cap, completed its previously announced C$69.1 million (US52.6M), underwritten public offering of 37.375 million units at C$1.85 (US$1.41) per unit. Each unit consisted of one common share and one half of a common share purchase warrant with a term of 3 years and an exercise price of C$2.5 (US$1.90) per share (a premium of approximately 35%). We value this warrant at approximately C$0.32 (C$0.16 per unit) giving a net stock price of C$1.69. The stock closed at C$1.49 per share on the transaction date, reflecting significant pressure from the financing and finishing the week down 33% from the prior week and approximately 54% YTD. Investors have been disappointed by the company’s inability to turn around its revenues which were down 27% in the third quarter compared to the previous year and 22% sequentially from the 2nd quarter. This decline comes despite the company’s strategy shift to pursue the value segment of …

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