Viridian Cannabis Credit Rankings Prioritize Liquidity
Over the last two weeks, TerrAscend (OTC: TRSSF), Verano (OTC: VRNOF), and Acreage (OTC: ACRDF) have obtained new credit agreements with interest rates in the low teens, demonstrating tha
Will Low Liquidity And Challenging Markets Lead To More Debt Restructurings?
The cannabis equity capital market is highly challenging: For the first 42 weeks of 2022 only $72.5M of equity issues were closed by the U.S. Cultivation & Retail sector compared to $2.03B for the same period in 2021.
Cannabis Stocks Chart Of The Week: Will Debt Maturities Trip Up The Big 10 MSOs?
Nine of the ten largest debt raises ever completed for U.S. Cultivation & Retail companies were closed in 2021 and, to a much lesser extent, YTD 2022. Over $3.8B of debt was sold over this period, far more than in any similar period in U.S. Cannabis history.
Investors should be paying close attention to the efforts of MSOs to extend or refinance their upcoming debt maturities.
Cannabis Chart Of The Week: How Illiquid Are Cannabis Companies?
Investors are rightfully concerned about cannabis company liquidity in the face of a constricting capital market. To dig into this, we compared adjusted cash balances to current loan and lease obligations.
Most, But Not All, Psychedelics Companies Have Sufficient Liquidity
The Chart represents the liquidity positions of the 21 Psychedelic sector companies in the Viridian Value Tracker database.
Tracking U.S. Cannabis Capital Raises by Region & Industry Sector
The Viridian Capital Sector and Regional Trackers provide actionable intelligence on where capital is being raised (by country, state & region) and which of the twelve subsectors of cannabis/psychedelics is raising it.
CA Cultivation Tax Elimination, Meaningfully Eases Pricing Pressures And Likely Drives Consolidation
July 6, 2022: Last week, California’s onerous cultivation tax ($161/lb.) was officially eliminated. While far from solving all the issues for California operators, the tax change meaningfully reduces the break-even threshold for growers and particularly those with the biggest scale in capacity.
Cannabis Chart Of The Week: The Hottest States for Cannabis M&A Are Changing
Viridian Capital tracks all acquisitions by location of acquirer and target companies, and there have been significant shifts in the targeting of M&A activity between 2021 and 2022 YTD.
Cannabis Chart Of The Week: Is California About To Fix Its Cannabis Mess?
California is the largest cannabis market in the world, but the state has struggled with seemingly intractable problems since its adult recreational launch in 2016:
High cultivation and excise taxes and a generally burdensome regulatory environment have hindered the formation of a vibrant legal market.
Cannabis Chart Of The Week: The Enormous Tax Impact On Marijuana Companies From IRS Code 280E
Section 280E of the IRS tax code is one of the most reviled features of the current cannabis…