Viridian Chart Of The Week: Have We Seen The Bottom For Hemp?

  • Hemp capital market deals punished in 2020: 

    • Hemp capital raise transactions are down significantly in 2020 both in terms of aggregate dollars raised and in number of transactions. A similar picture is seen when we look at the number of acquisitions targeting hemp and when we look at hemp as a % of total cannabis capital market activity.

  • What went wrong:

    • Farmers over planted in search of a new cash crop.

    • Major processors fostered this excess cultivation in anticipation of the entrance of large CPG companies into the CBD market. Delays in FDA regulation kept this new source of demand from materializing.

    • Lack of adequate processing …

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