There were three fewer capital raises and a $319.2 million lower volume this week than in the prior week. The average deal size was $19.6 million this week vs. $7.1 million in the same week last year. Total capital raised YTD in 2021 is approximately $262M lower than the same period in 2019.
Cap Raises by Sector:
*One of the companies came from the Cultivation & Retail sector
*The other came from Infused Products & Extracts
Viridian believes debt financing is the wisest MSO finance strategy due to:
*Equity valuation multiples have come down from their peaks.
*Debt costs have come down significantly. (Cannabis debt has low or no prepayment penalties giving issuers the ability to react to equity market changes.)
So why haven't we seen more debt issuance?
The top 10 MSO's now have more than $2 billion of cash. For the most part MSOs are more worried about spending cash than raising it.
Viridian Cannabis Deal Tracker - Week Ending June 4th, 2021
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
Episode 744 of The Talking Hedge:
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