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Weekly Deal Watch: Cannabis capital continues to bloom, with YTD total more than fives times larger than a year ago

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This weekly series from Marijuana Business Daily and Viridian Capital Advisors provides the latest data on cannabis investment activity and M&A, along with key takeaways, analysis and trends based on recent market moves.

The data below, provided by Viridian Capital Advisors, is for the weeks ended Nov. 9 and  Nov. 16.

Among this week’s top highlights: Through Nov. 16, cannabis companies across North America have raised $13.1 billion. That’s more than five times the amount raised during the same period in 2017.

 

Capital raise takeaways from the past two weeks:

  • U.S.-based multistate operators continue to ink massive raises as they turn to Canada to go public. Harvest Health and Recreation of Arizona (CSE: HARV) closed a $218.1 million funding through a brokered private placement, while New York-based Acreage Holdings (CSE: ACRG.U) landed a $209.7 million raise through a brokered private placement and $104.5 million through a non-brokered placement.  “We’ve seen a handful of the multistate operators drum up significant raises as the flow of capital shifts from Canada to the U.S.,” said Harrison Phillips, vice president at Viridian Capital Advisors.
  • Kentucky-based hemp cultivator and processor GenCanna closed a $30 million investment from MariMed of Massachusetts (OTC: MRMD). The deal underscores the “continued interest in hemp and CBD markets” as optimism and “legal clarity” grow over the expected passage of the U.S. Farm Bill.
  • Green Growth Brands completed an equity raise of 55 million Canadian dollars ($41.3 million), including a CA$30.5 million private placement. The Ohio company is led by Peter Horvath, a former executive at Victoria’s Secret, American Eagle Outfitters and Limited Brands.

Merger & acquisition highlights for the past two weeks:

  • Canadian cannabis grower Flower One Holdings (OTC: FLOOFacquired NLV Organics, a Nevada-based marijuana licensee, in a deal that highlights increasing interest in acquisitions in the Silver State. “Nevada is getting over its supply-chain hiccups” Phillips said, “and the licensing environment is somewhat limited there, which is why we’re starting to see more operations in that state change hands.”
  • Chicago-based Green Thumb Industries (CSE: GTII; OTC: GTBIF) acquired Florida licensee KSGNF, a deal that underscores growing interest in the Sunshine State as the medical market’s growth begins to accelerate, according to Phillips.

Viridian Capital Advisors is a financial and strategic advisory firm that provides investment banking, M&A, corporate development and investor relations services to emerging growth companies and qualified investors in the cannabis sector.

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