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Viridian Chart Of The Week: A Changing Of The Guard, Cannabis M&A Moves East

November 17, 2020 9:31 am
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  • Viridian reports a key shift in YTD M&A activity by region, with acquisition activity moving to the Eastern part of the country. The passage of adult-use legalization in N.J. this past Election Day was further proof that the Eastern cannabis market is progressing with adult-use legalization, which is driving M&A activity.

  • According to data from the Viridian Cannabis Deal Tracker, acquirers have increasingly targeted companies in the East in fast growing medical states, including PA and NY, and newer adult-use states, including NJ, IL and MA. In total, transactions in these states represented 50% of total industry M&A activity year-to-date. M&A activity in these states has focused on cultivation and retail, as competitors' race to add production capacity and retail.

  • Over the past month there have been multiple deals announced in the Northeast that are expected to close over the next year.

  • M&A activity in Western states, including AZ, CA, CO and NV, has declined from 63.2% of total industry M&A activity, to 40.6%. Acquisitions in Western states have diversified towards the Ag Tech, Software, and Biotech sectors.

The Viridian Cannabis 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 analyzed all closed deals and segments each according to key metrics:

  • Industry Sector (one of 12 sectors, from Cultivation to Brands)

  • Dollar value of the transaction

  • Region in which the deal occurred (country or U.S. state)

  • Status of the company announcing the transaction (Public vs. Private)

  • Deal structure (equity vs. debt)

  • Key deal terms (Pricing and Valuation)

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.

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.

Lead image by Ilona Szentivanyi. Copyright: Benzinga.

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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Cannabis Markets

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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. read more