Photo by Clker-Free-Vector-Images & Kevin Phillips
Two prominent cannabis M&A deals closed this week, including the buyout of a struggling New York State medical cannabis licensee and the merger of two of the largest Canadian licensed producers.
Summary for the Week Ended February 3, 2017
- Announcements: 23
- Capital Raises: 10
- M&A Transactions: 8
- Joint Venture: 2
- Stock Listings: 3
- Year-over-Year:
- Capital Raises: 5 capital raises closed this week for a total of $20.7 million compared to 1 raise closed for a total of $0.1 million this week last year.
- M&A Transactions: 5 deals were closed this week compared to 0 deals closed this week last year.
- Two key M&A transactions closed this week:
- Canopy Growth Corp. (TSX: CGC) and Mettrum Health Corp. (formerly TSXV: MT) announced the closing of their merger, creating the largest cannabis company in Canada and likely the largest legal cannabis business in the world.
- MedMen, a California-based management consulting firm, completed its previously announced acquisition of Bloomfield Industries, Inc., one of the five licensed medical cannabis companies in New York State, following months of financial struggles.
Capital Raises
- Emblem Corp. (TSXV: EMC), a licensed producer in Canada, closed a C$15.9 million private placement to fund the planed expansion of its facility in Paris, Ontario and for general corporate purposes.
- CanniMed Therapeutics, Inc. (TSX: CMED), a licensed medical cannabis company in Canada, raised an additional C$9.0 million upon the full exercise of the over-allotment option from its underwritten initial public offering.
- Cannabi-Tech Ltd., an Israel-based provider of lab-grade medical cannabis quality control systems, closed a $1.0 million seed round to launch its testing platform in North America.
- Laguna Blends, Inc. (CSE: LAG), a producer of hemp- and CBD-infused products, closed the first tranche of its private placement for gross proceeds of C$831,500.
- Abattis Bioceuticals Corp. (CSE: ATT), an aggregator of agricultural and biotechnological services and technologies for the legal cannabis industry, closed on a C$50,000 private placement as part of its initiative to fund its Northern Vine program.
Week Ended 2.3.17 – Capital Raises by Sector
Mergers & Acquisitions
- Canopy Growth Corp. (TSX: CGC) and Mettrum Health Corp. (formerly TSXV: MT) announced the closing of their merger, creating the largest cannabis company in Canada and likely the largest legal cannabis business in the world.
- MedMen, a California-based management consulting firm, completed its previously announced acquisition of Bloomfield Industries, Inc., one of the five licensed medical cannabis companies in New York State, following months of financial struggles.
- Diagnostic Lab Corp., a private cannabis and food safety firm, acquired a 20% interest in Dirigo Food Safety based in Yarmouth, Maine.
- Grow Solutions Holdings, Inc. (OTCQB: GRSO) acquired West Coast Organic and Hydroponic Supply, a retailer of indoor and outdoor growing supplies located in Boring, Oregon.
- PotNetwork Holdings, Inc. (OTCPink: POTN) acquired First Capital Venture Corp. and it’s wholly owned subsidiary, Diamond CBD, Inc., as a foray into the hemp- and CBD-infused product marketplace.
Week Ended 2.3.17 – M&A Deals by Sector
Summary of Year-to-Date (YTD) Transactions
Capital Raises
- We have tracked 22 capital raises totaling $80.5 million.
- Public versus Private:
- Public companies: 19 raises totaling $74.7 million
- Private companies: 3 raises totaling $5.8 million
- Equity versus Debt:
- Equity: 14 raises totaling $67.8 million
- Debt: 5 raises totaling $12.7 million
YTD Capital Raises by Week
YTD Capital Raises by Sector
Mergers & Acquisitions
- We have tracked 14 M&A transactions.
- 12 deals by public companies
- 2 deals by private companies
- Canadian companies continue to acquire assets in U.S. cannabis markets.
- 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.
YTD M&A Deals by Week
YTD M&A Deals by Sector
Transactions by Sector for Week Ended February 3, 2017
Capital Raises
Cultivation & Retail
Lotus Ventures Announces Facility Financing Agreement
CanniMed Therapeutics Inc. Closes Over-Allotment
Emblem Corp. Announces Closing of C$15.9 Million Financing
Emerald Health Announces C$10 Million Bought Deal
Emerald Health Announces Increase in Bought Deal to C$12 Million
Lotus Ventures Announces Facility Financing Agreement
Infused Products & Extracts
Laguna Blends Closes First Tranche of Private Placement for 5,543,329 Units for Total Proceeds of C$831,500
Investments/M&A
Abattis Closes the Warrant Exercise Incentive Program & Private Placement
Miscellaneous Ancillary
Cannabi-Tech Closes $1M Seed Funding Round
Mergers & Acquisitions
Agriculture Technology
GRSO Acquires West-Coast Organic
Cultivation & Retail
MedMen Acquires New York Medical Marijuana Company
Maple Leaf Secures Site for New Nevada Facility
Canopy Growth and Mettrum Announce Closing of Acquisition
MYM Announces Acquisition of Majority Interest in Stage-4 Licensed Producer Applicant
Infused Products & Extracts
PotNetwork Holdings Inc. Acquires CBD Industry Innovator, First Capital Venture Co., Parent Company of Diamond CBD Inc.
Vinergy Resources/MJ BioPharma to Acquire Majority Stake in Multinational Plant Breeder
Investments/M&A
Liberty Leaf Signs LOI to Acquire 27.5% of GR8 Track, Inc., a Licensed California Medical Cannabis Producer
Joint Venture
Infused Products & Extracts
Earth Science Tech, Enters Multi-Billion Dollar Sports Supplement Industry via Joint Venture with Nutrition Specialties and Forzagen
Aurora Cannabis and Radient Technologies Provide Update on Exclusive Collaboration Arrangements
Stock Listings
Cultivation & Retail
Canopy Growth to Trade as WEED on the TSX
Infused Products & Extracts
Vinergy Resources to Commence Trading on OTCQB Marketplace
To Learn More About the Viridian CANNABIS DEAL TRACKER Contact:
Harrison Phillips
Viridian Capital Advisors, LLC
(212) 209-3086
[email protected]
* 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, may act, or may have acted in the past, as a financial advisor, fiscal agent, or underwriter for certain of the companies mentioned herein and may receive, or 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 that’s been collected, segmented, and analyzed, the 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 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, 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.
