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Data: Capital Raises And M&A Very Slow Amid COVID-19 Pandemic

April 16, 2020 12:21 pm
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Data: Capital Raises And M&A Very Slow Amid COVID-19 Pandemic

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

4/6/2020 – 4/10/2020

CAPITAL RAISES

  • The impact of COVID-19 on the global capital markets in general, and on the cannabis capital markets in particular, continues.
  • For the week of April 6-10, we recorded only 1 capital raise totaling $8.4 million, vs. 11 transactions totaling $185.3 million for the same period in 2019.
  • This transaction was a Series A equity raise for GrowFlow, a seed-to-sale software company.
  • This week marked the first time this year that we haven’t reported on a capital raise by a public cannabis company.
  • This week also represented the first time this year that we haven’t reported on a debt raise by a public or private cannabis company.

Noticias sobre cannabis en Español en El Planteo.

MERGERS & ACQUISITIONS

  • We recorded 3 M&A transactions during this period, vs. 7 in the prior year period, a slight tick-up in activity from the prior weeks in 2020.
  • All three transactions were done by public companies, two were buy-side and one was sell-side.
  • Curaleaf Holdings, Inc. (CSE:CURA) (OTC:CURLF), a leading vertically integrated cannabis operator in the United States, completed its acquisition of three Arrow Alternative Care dispensaries in Connecticut, expanding Curaleaf’s positioning in the CT market.
  • CordovaCann Corp. (CDVA.CN) (OTC:LVRLF), a cannabis-focused consumer products company, completed the purchase of certain assets including intellectual property from Starbuds International Inc. The assets being acquired will enable Cordova to establish a cannabis retail platform and open up to five recreational cannabis stores and four medical cannabis clinics in Western Canada under the Starbuds brand name. 
  • Rubicon Organics Inc. (CSE:ROMJ) (OTC:ROMJF), a Canadian Licensed Producer, completed the sale of its 40,000 sq. ft. hybrid greenhouse in Ferndale, Washington for US$8.5 million to a group of real estate investors. Proceeds from the sale will strengthen the Company’s balance sheet, providing working capital to ramp-up production and sales across Canada.

WEEKLY SUMMARY

CAPITAL RAISES

MERGERS & ACQUISITIONS

YEAR-TO-DATE SUMMARY

CAPITAL RAISES

Capital Raises by Week

Capital Raises by Sector

MERGERS & ACQUISITIONS

M&A Activity by Week

M&A Activity by Sector

See Also: Despite End-Of-Year Spike, Cannabis Capital Raises For 2019 Lagged Compared To 2018

Photo by Javier Hasse.

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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