Via Bogdan

Over $300 million in capital raises tracked year-to-date; M&A activity accelerating since end of third quarter 2016.

Summary for the Week Ended March 10, 2017

  • Announcements: 22
    • Capital Raises: 9
    • M&A Transactions: 10
    • Joint Venture: 1
    • Capital Raise & New Stock Listing: 1
    • New Stock Listing: 1
  • Year-over-Year:
    • 8 capital raises closed this week for a total of $38.8 million ($4.8 million average) compared to 7 raises closed for a total of $5.9 million ($0.8 million average) this week last year.
    • 3 M&A deals closed this week compared to 1 deal closed this week last year.
  • We have tracked over $300 million in capital raises closed by cannabis companies year-to-date, with the top sectors being:
    • Cultivation & Retail: $167.9 million
    • Investments/M&A: $40.6 million
    • Consulting Services: $37.5 million
  • M&A activity in Investments/M&A sector follows trend of accelerating M&A activity in overall cannabis sector:
    • We tracked an average of 1.4 deals closed per week in the first three quarters of 2016 compared to 3.2 deals closed per week from the start of the fourth quarter of 2016 to date in 2017.

Capital Raises

  • Cronos Group, Inc. (TSXV: MJN) closed a C$17.3 million bought deal public offering for expanding capacity, purchasing equipment, making investments, paying contractual obligations, and working capital.
  • Namaste Technologies, Inc. (CSE: N) closed a C$11.3 million bought deal private placement for the acquisition of Australian Vaporizers PTY Ltd. and for working capital and general corporate purposes.
  • Alternate Health Corp. (CSE: AHG) closed a non-brokered private placement for C$7.6 million for continued acquisition and investment activities in the medical cannabis industry as well as for general working capital purposes.
  • GrowCo, Inc., a private subsidiary of Two Rivers Water & Farming Company (OTCQB: TURV), closed a $5.0 million debt raise to continue building out its marijuana grow campus in Pueblo County, Colorado and for operating capital for GrowCo.
  • Newstrike Resources Ltd. (TSXV: NR) closed a C$3.1 million private placement for subscription receipts in connection with a proposed business combination with HPI Holdings Ltd., a company engaged in medical cannabis cultivation in Ontario, Canada.
  • Surna, Inc. (OTCQB: SRNA) closed a $2.2 million private placement for sales expansion and strategic growth.
  • Future Farm Technologies, Inc. (CSE: FFT) closed a C$2.1 million non-brokered private placement for strategic acquisition purposes.
  • Cronos Group, Inc. (TSXV: MJN) invested C$1.1 million into Whistler Medical Marijuana Corp., a licensed producer of medical cannabis in Canada, to maintain its current equity position.
Week Ended 3.10.17 – Capital Raises by Sector

Mergers & Acquisitions

  • Alternate Health Corp. (CSE: AHG) acquired a 20% interest in Clover Trail Capital LLC, a Texas-based investment company. Through this acquisition, Alternative Health Corp. obtained an 8% interest in Sun Clinical Laboratories LLC, which is 40% owned by Clover Trail.
  • Lifeloc Technologies, Inc. (OTCPink: LCTC) acquired various assets related to handheld alcohol breath detection from Track Group, Inc.
  • Endexx Corp. (OTCPink: EDXC) acquired Phyto-Labs LLC, the owner of Amrita™ and its proprietary formulas for flavored beverages containing cannabidiol (CBD).
Week Ended 3.10.17 – M&A Deals by Sector


Summary of Year-to-Date (YTD) Transactions

Capital Raises

  • We have tracked 66 capital raises totaling $301.5 million.
  • Public versus Private:
    • Public companies: 48 raises totaling $281.9 million
    • Private companies: 18 raises totaling $19.6 million
  • Equity versus Debt:
    • Equity: 50 raises totaling $273.5 million
    • Debt: 16 raises totaling $28.0 million
YTD Capital Raises by Week

YTD Capital Raises by Sector

Mergers & Acquisitions

  • We have tracked 30 M&A transactions.
    • 26 deals by public companies
    • 4 deals by private companies
  • M&A activity in Agriculture Technology sector points to continued development and implementation of more advanced growing technologies as cultivators seek to maximize efficiency and to lower costs amid pricing pressure.
  • Activity in Investments/M&A sector follows trend of accelerating M&A activity in cannabis sector
    • Average of 1.4 deals closed per week in first three quarters of 2016 compared to 3.2 deals closed per week from the start of the fourth quarter of 2016 to date in 2017.
YTD M&A Deals by Week

YTD M&A Deals by Sector


Transactions by Sector for Week Ended March 10, 2017

Capital Raises

Agriculture Technology
Future Farm Closes Over-Subscribed Private Placement for Gross Proceeds of C$2,071,174

GrowCo Completes Capital Raise and Begins Follow Up Raise

Surna Inc. Closes Private Placement for Aggregate Total of $2,225,000

Biotech/Pharma
Intec Pharma Announces $10 Million Private Placement

Consumption Devices
Namaste Closes C$11,338,000 Bought Deal Private Placement

Cultivation & Retail
Newstrike Resources Ltd. Announces Completion of C$3,125,000 Financing in Connection with Proposed Business Combination

Cronos Re-Invests in Whistler as Part of Transformative Expansion

Infused Products & Extracts
Lexaria Bioscience Announces Intention to Complete US$2,500,000 Brokered Private Placement

Investments/M&A
Cronos Group Announces Closing of Previously Announced C$17 Million Bought Deal

Mergers & Acquisitions

Biotech/Pharma
Rising India Inc. Moves Forward with Final Agreement on Rising BioSciences Merger

Consumption Devices
Easton Pharmaceuticals Provides Update on Acquiring Major Vaporizer and e-Liquids Manufacturer iBliss, Inc.

Cultivation & Retail
Aurora to Acquire Peloton Pharmaceuticals Inc.

Umbral Acquires Additional 25% Interest in Phyeinmed, a Health Canada ACMPR Stage 5 Review Stage Applicant

AlumiFuel Issues LOI for Meds R Us

Infused Products & Extracts
Endexx Closes Acquisition of Phyto Labs LLC

Creso Continues to Fast-Track Commercialisation with Binding LOI for New Human and Animal Health Cannabinoid-Rich Nutraceutical Products

MYM Nutraceuticals Inc. to Acquire Leading Hemp CBD Brand “HempMed”

Miscellaneous Ancillary
Lifeloc Technologies Enters into Asset Purchase Agreement with Track Group, Inc.

Alternate Health Acquires Stake in Clover Trail Capital LLC; Acquisition Includes Partial Ownership of Sun Clinical Laboratories

Joint Venture

Software/Media
SNM Global Holdings has Agreed to Terms for Entering into a Joint Venture Agreement with Green, Inc.

Capital Raise & New Stock Listing

Miscellaneous Ancillary
Alternate Health Announces U.S. Listing on the OTC, and the Closing of an Additional C$7.5 Million in Funding

New Stock Listing

Infused Products & Extracts
NeutriSci Announces OTCQB Listing


To Learn More About the Viridian Cannabis Deal Tracker, Contact:

Harrison Phillips
Viridian Capital Advisors, LLC
(212) 209-3086
[email protected]


*Disclaimers
The information contained herein is for informational purposes and is not intended as a research report. It should not be construed as Viridian recommending investment in cannabis companies or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in cannabis companies entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Viridian Capital Advisors and its affiliates, as well as their respective partners, directors, shareholders, and employees, may have a position in the securities mentioned herein and may make purchases and/or sales from time to time. Viridian Capital Advisors, through broker-dealer services provided by Pickwick Capital Partners, LLC, Member FINRA/SIPC, may act, or may have acted in the past, as a financial advisor for certain of the companies mentioned herein and may receive, and may have received, a remuneration for their services from those companies.

About the Viridian Cannabis Deal Tracker
The Viridian Cannabis Deal Tracker monitors capital raise, mergers & acquisition, joint venture, and licensing activity for both public and private companies in the legal cannabis industry across 12 key sectors, including Agriculture Technology, Biotech/Pharma, Consulting Services, Consumption Devices, Cultivation & Retail, Hemp, Investments/M&A (Holding Companies), Infused Products & Extracts, Miscellaneous Ancillary, Physical Security, Real Estate, and Software/Media.

Leveraging more than 3 years of data collection, segmentation, and analysis, the Viridian Cannabis Deal Tracker supports smart decision-making by providing sector-specific actionable intelligence and trend analysis in regard to issuers, investors, acquirers, valuations, deal structures, and deal terms.

The above information whether in part or in its entirety neither constitutes an offer nor makes any recommendation to buy or sell any securities.

About Viridian Capital Advisors, LLC
Viridian Capital Advisors (www.viridianca.com) is a financial and strategic advisory firm dedicated to the cannabis market. We are a data- and market intelligence-driven firm that provides investment banking, M&A, corporate development, and investor relations services to emerging growth companies and qualified investors in the cannabis sector. Our banking practice, through broker-dealer Pickwick Capital Partners, FINRA/SIPC provides capital and M&A to fund the growth of our clients, while our advisory practice helps to position and build their businesses. Our team’s decades of high level operating and transactional experience on Wall Street in a variety of emerging sectors, allows Viridian to provide comprehensive strategic and financial solutions that assist cannabis enterprises in realizing their full potential.