Cannabis Training University via Wikimedia Commons
We saw the continuation of several trends in the cannabis capital markets during the week ended January 13, 2017: Canadian-licensed producers continue acquiring real estate to build out their cultivation capacity as well as clinic networks to boost patient access and retention; companies continue to seek additional capital and liquidity by listing on public stock exchanges, primarily those in the US and Canada; and investment funds are launched to attempt to seek returns from diversified portfolios of cannabis-related assets. Also, one of New York State’s medical cannabis licensees, Bloomfield Industries, was sold to MedMen after facing financial troubles following the slow roll-out of New York’s medical cannabis program.
Summary for the Week Ended January 13, 2017
- Announcements: 23
- Capital Raises: 9
- M&A Transactions: 10
- Joint Venture and Capital Raise: 1
- Stock Listings: 2
- New Investment Fund: 1
- Year-over-Year:
- Capital Raises: 6 capital raises closed this week for a total of $6.1 million compared to 3 raises closed for a total of $6.5 million this week last year
- M&A Transactions: 0 deals were closed this week compared to 4 deals closed this week last year
- Family-office-backed cannabis management and consulting firm MedMen set to acquire struggling New York medical cannabis licensee, Bloomfield Industries, following slow roll-out of New York State’s medical cannabis program.
- OrganiGram Holdings, Inc. (TSXV: OGI) to acquire 2.6-acre property adjacent to current facility as Canadian licensed producers continue to invest in capacity in preparation for anticipated recreational market.
- U.S.-based Kalytera Therapeutics, Inc. (TSXV: KALY) listed on Toronto Stock Venture Exchange (TSXV) as new wave of cannabis companies go public in wake on 2016 U.S. elections.
- New investment fund launched with support from Canadian licensed producer, Aphria, Inc. (TSXV: APH), points to continued momentum in cannabis capital markets.
Capital Raises
- Zoned Properties, Inc. (OTCQX: ZDPY) raised just over $2.0 million through the issuance of convertible notes.
- Veritas Pharma, Inc. (CSE: VRT) closed a non-brokered private placement for C$2.2 million to complete the acquisition of Cannevert Therapeutics Ltd. and for working capital purposes.
- Nemus Bioscience, Inc. (OTCQB: NMUS) completed a preferred stock offering of $1.2 million.
- Valens GroWorks Corp. (CSE: VGW) closed on C$753,100 in the final tranche of its private placement to be used for security upgrades, equipment purchases, debt repayment, and general working capital purposes.
- Arcturus Growthstar Technologies, Inc. (CSE: AGS) closed the initial tranche of its private placement for C$295,000 for general working capital purposes.
- CLS Holdings USA, Inc. (OTCQB: CLSH) raised $460,000 through the issuance of convertible notes
Week Ended 1.13.17 – Capital Raises by Sector
Mergers & Acquisitions
- Mettrum Health Corp. (TSXV: MT) acquired Bodystream, a network of medical cannabis clinics in Canada, continuing the recent trend of Canadian licensed producers acquiring, merging with, or partnering with these clinic groups.
Week Ended 1.13.17 – M&A Deals by Sector
Summary of Year-to-Date (YTD) Transactions
Capital Raises
- We have tracked 9 capital raises totaling $7.9 million.
- Public versus Private:
- Public companies: 9 raises totaling $7.9 million
- Private companies: 0 raises totaling $0
- Equity versus Debt:
- Equity: 5 raises totaling $5.2 million
- Debt: 4 raises totaling $2.7 million
YTD Capital Raises by Week
YTD Capital Raises by Sector
Mergers & Acquisitions
- We have tracked 2 M&A transactions.
- 2 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 13, 2017
Capital Raises
Agriculture Technology
Arcturus Closes Initial Tranche for C$295,000
Biotech/Pharma
Veritas Announces Private Placement
Veritas Closes Private Placement
Nemus Bioscience Closes Preferred Stock Offering
Cultivation & Retail
Emerald Health Files Preliminary Base Shelf Prospectus
Valens GroWorks Closes Final Tranche of Offering
Infused Products & Extracts
CLS Holdings USA, Inc. Issues Convertible Notes
Physical Security
Helix TCS Amends Convertible Notes and Sells Shares for Cash
Real Estate
Zoned Properties Issues Convertible Debentures
Mergers & Acquisitions
Cultivation & Retail
Mettrum Health Corp. to Acquire Bodystream Cannabis Clinic Network
Organigram Acquires Adjacent Property for Infused Products Manufacturing
TW Holding Ltd. Closes Takeover Bid for AusCann
California Firm, MedMen, Acquiring Bloomfield Industries in Medical Marijuana Shakeup
Hemp
True Leaf Completes Purchase of Award?Winning Animal?Care Product Company
Investments/M&A
Marapharm Ventures, Inc. Increases Its Investment Position in Veritas Pharma, Inc. to 15 Million Shares and Warrants
Marapharm Ventures, Inc. Invests in Veritas Pharma, Inc.
CannaRoyalty to Acquire 20% of Anandia Labs, a Leader in Cannabis Testing, Extraction, and Genetics
Joint Venture & Capital Raise
Stock Listings
Biotech/Pharma
Kalytera Therapeutics Begins Trading on the TSX Venture Exchange
Investments/M&A
The Canadian Bioceutical Corporation to List on the CSE and Delist from the TSXV
Stock Listings
Biotech/Pharma
Kalytera Therapeutics Begins Trading on the TSX Venture Exchange
To Learn More About the Viridian CANNABIS DEAL TRACKER Contact:
Harrison Phillips
Viridian Capital Advisors, LLC
(212) 485-0284
[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 provide market intelligence, investment banking, investor relations, and corporate development 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.
