Two of the largest Canadian licensed producers announced shareholder approval for their tentative merger. Additionally, two large capital raises were announced and subsequently increased, and two other firms announced M&A transactions undertaken to become publicly traded entities.
Summary for the Week Ended January 27, 2017
- Announcements: 26
- Capital Raises: 8
- M&A Transactions: 11
- M&A and Going-Public Transaction: 2
- Capital Raise and M&A: 1
- Joint Venture: 2
- Spin-off: 1
- Stock Listings: 1
- Capital Raises: 2 capital raises closed this week for a total of $37.5 million compared to 9 raises closed for a total of $20.8 million this week last year.
- M&A Transactions: 3 deals were closed this week compared to 0 deals closed this week last year.
- Canopy Growth Corp. (TSX: CGC) and Mettrum Health Corp. (TSXV: MT) announced their respective shareholder approvals of the plan of arrangement that will result in the merger of the two Canadian Licensed Producers, what will likely be the largest merger in the cannabis space to date.
- Two Canadian firms announced then increased the sizes of their capital raises:
- Aurora Cannabis, Inc. (TSXV: ACB) announced a bought deal private placement of C$50.6 million, which is subsequently increased to C$60.0 million.
- Kalytera Therapeutics, Inc. (TSXV: KALY) announced a C$12.0 million private placement, which it subsequently increased to C$15.0 million.
- Two more companies going public:
- Finore Mining, Inc. (CSE: FIN) entered into a share exchange agreement with Kushtown USA, LLC pursuant to which Kushtown will be acquired, effectively making it a public company.
- WRAPmail, Inc. (OTCPink: WRAP) acquired HealthMax Group, a Washington-State-based producer of CBD products, effectively making HealthMax a public company.
- The Canadian Bioceuticals Corp. (CSE: BCC) completed two simultaneous capital raises, a $27.5 million private placement of common shares and an issuance of a $10 million promissory note, to be used for the cash portion of the consideration of its recent Arizona acquisitions, to build out a new cultivation facility in Arizona, to support further acquisitions, and for general working capital purposes.
Week Ended 1.27.17 – Capital Raises by Sector
Mergers & Acquisitions
- The Canadian Bioceuticals Corporation (CSE: BCC) closed the acquisition of a group of cannabis management consulting companies serving legal medical cannabis businesses in Arizona.
- GreenGro Technologies, Inc. (OTCPink: GRNH) acquired a 55 percent majority interest in Biodynamics, LLC, an Ohio-based leader in controlled environmental agriculture (CEA), renewable energy, and consumer hydroponics.
- Efftec International, Inc. (OTCPink: EFFI) acquired Volcanic Solutions, a Florida-based producer of proprietary formulated growing medium mixes.
Week Ended 1.27.17 – M&A Deals by Sector
Summary of Year-to-Date (YTD) Transactions
- We have tracked 16 capital raises totaling $56.5 million.
- Public versus Private:
- Public companies: 14 raises totaling $51.7 million
- Private companies: 2 raises totaling $4.8 million
- Equity versus Debt:
- Equity: 11 raises totaling $43.8 million
- Debt: 5 raises totaling $12.7 million
YTD Capital Raises by Week
YTD Capital Raises by Sector
Mergers & Acquisitions
- We have tracked 8 M&A transactions.
- 8 deals by public companies
- 0 deals by private companies
YTD M&A Deals by Week
YTD M&A Deals by Sector
Transactions by Sector for Week Ended January 27, 2017
ChineseInvestors.com, Inc. Issues Convertible Preferred Stock
Mergers & Acquisitions
Efftec International, Inc. Announces Acquisition of Volcanic Solutions
M&A and Going-Public Transaction
Infused Products & Extracts
Finore Mining Announces Definitive Agreement for Acquisition of Kushtown USA, LLC
Capital Raise and M&A
New Age Farm Provides Corporate Update
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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.