New cannabis markets, value creators ripe for investment
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 through the week ended Feb. 15.
Top takeaways from capital raises:California-based marijuana producer and distributor Flow Kana closed a $125 million raise – the largest private funding round for a cannabis company in the United States. “As the industry continues to commoditize, companies in the supply chain that can enhance effectiveness or efficiencies in operations – whether through better technologies or specialization and trade – can create value,” said Harrison Phillips, vice president at Viridian Capital Advisors. “Flow Kana is specializing in large-scale processing for small-scale farmers, providing ‘mom-and-pop’ operators access to equipment and services they would be hard-pressed to afford on their own.” Canadian licensed producers continue to lay claim to capital, including Quebec-based Hexo Corp. (HEXO on TSX and NYSE), which closed on a bank debt facility of 65 million Canadian dollars ($49.2 million) that includes a CA$50 million term loan and a CA$15 million revolving loan. The deal comes with an “uncommitted” option to increase the facility by up to CA$135 million.
Top M&A takeaways:
- Bloomberg: Investment Banks Eyeing European Cannabis Marketsinternationalcbc.comMarch 5, 2019
- 50 New Cannabis Markets Globally - New Frontier Datanewfrontierdata.comJanuary 21, 2019
- The State of Legal Marijuana Marketswww.greenmarketreport.com
- Chart: Projected sales on the potential size of new cannabis markets, when sales expected to beginmjbizdaily.comJune 11, 2018