The graph shows trailing four-week capital raises by type and location going back to 2018.
The Viridian Capital Chart of the Week highlights key investment, valuation and M&A trends taken from the Viridian Cannabis Deal Tracker.
The Viridian Cannabis Deal Tracker provides the market intelligence that cannabis companies, investors, and acquirers utilize to make informed decisions regarding capital allocation and M&A strategy. The Deal Tracker is a proprietary information service that monitors capital raise and M&A activity in the legal cannabis and hemp industry. Each week the Tracker aggregates and analyzes all closed deals and segments each according to key metrics:
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 $50 billion in aggregate value.
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
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Total capital raises are the lowest in recent history, slightly below the capital crunch year of 2019.
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Capital raises have been more heavily tilted toward debt over the last four weeks than in any of the past four years. The reasons for this shift have been the topic of past Viridian Capital Charts of the Week.
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The green bars represent U.S. raises which have dominated the cannabis capital market.
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The downturn in capital raises appears even more dramatic if we focus on only the first two weeks of the year.
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Significant equity raises are on hold due to the continued downtrend in the market. Cannabis equity prices, as represented by the Advisor Shares Pure U.S. Cannabis ETF (MSOS), are down 8.7% YTD and 30.2% since the beginning of 2021.
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Recent equity and debt issues by real estate sector companies like AFC Gamma, NewLake Capital, and Power REIT are precursors of more debt issuance to come.
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Dollar value of the transaction
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Region in which the deal occurred (country or U.S. state)
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Status of the company announcing the transaction (Public vs. Private)
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Deal structure (equity vs. debt)
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Key deal terms (Pricing and Valuation)
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Industry Sector (one of 12 sectors, from Cultivation to Brands)
