(MENAFN- Investors Ideas) WASHINGTON, DC - December 6, 2016 (Investorideas.com Newswire) Summary for the Week Ended December 2, 2016
23 announcements: 8 capital raises 7 M & A transactions 1 simultaneous capital raise and M & A transaction 4 going-public transactions 1 simultaneous capital raise and going-public transaction 1 new university cannabis fund 1 announcement of DTC eligibility Deal flow picks back up week after U.S. Thanksgiving holiday. Average size of capital raises continue increasing YoY. 5 capital raises closed for a total of $107.7 million (average deal size $21.5 million) compared to 11 raises for a total of $7.1 million in the same week last year (average deal size $645K). M & A activity remains elevated YoY. 3 M & A deals closed compared to 2 deals in the same week last year. Cannabis REIT, Innovative Industrial Properties, Inc. (NYSE: IIPR) priced its $67 million IPO (well below initial filing range) and began trading on the NYSE. Think the Canadian market is hot? Aphria, Inc. (TSXV: APH) closed a C$40 million bought deal financing, continuing the strong capital raise momentum by Canadian licensed producers in the second half of this year. Canadian licensed producer, Canopy Growth Corp. (TSX: CGC), enters into agreement to acquire MedCann GmbH Pharma and Nutraceuticals, a German-based pharmaceutical distributor, for placement of Tweed-branded cannabis in German pharmacies. Canadian cannabis cultivator, CanniMed Therapeutics, Inc., files preliminary prospectus for its proposed initial public offering. Canadian companies continue cross-border investments and M & A transactions in U.S. companies. The cannabis industry's first real strategic acquirer, Scotts Miracle-Gro Company (NYSE: SMG), increased its holding in AeroGrow International, Inc. (OTCQB: AERO) to 80% through the exercise of warrants. Colorado State University-Pueblo marijuana research institute finalizes funding.
Capital Raises
Innovative Industrial Properties, Inc. (NYSE: IIPR) priced its $67.0 million initial public offering and began trading. Aphria, Inc. (TSXV: APH) announced closing of its C$40.3 million bought deal offering for expansion of its production capabilities. Invictus MD Strategies Corp. (CSE: IMH) closed a C$12.0 million private placement for carrying out its acquisition strategy. Seattle-based S2solutions closed a $1.0 million financing round to scale its team and build out its product. Lexaria Bioscience Corp. (CSE: LXX) received $0.7 million through the exercise of warrants.
Mergers & Acquisitions
The Scotts Miracle-Gro Company (NYSE: SMG) increased its equity ownership in AeroGrow International, Inc. (OTCQB: AERO) to 80% through the exercise of its previously-outstanding warrants. Marapharm Ventures, Inc. (CSE: MDM) acquired the remaining 25% equity interest in EcoNevada, LLC, a cannabis cultivation and retail firm in Nevada, as well as 1.1 acres of land adjacent to EcoNevada's currently-owned 5.9-acre property.
Summary of Year-to-Date (YTD) Transactions
Capital Raises
We have tracked 293 capital raises totaling $992.8 million: Public companies: 230 raises totaling $750.4 million Private companies: 63 raises totaling $242.5 million Equity raises continue to outperform debt raises in both number of transactions and dollars raised: Equity: 171 raises totaling $836.4 million Debt: 122 raises totaling $156.4 million Capital raise follar volume spiked in week 49 as cannabis REIT, Innovative Industrial Properties, IPO'd on NYSE and Canadian licensed producer, Aphria, closed a C$40 million bought deal financing.
Mergers & Acquisitions
We have tracked 91 M & A transactions. 72 by public companies 19 by private companies Over one-third of all deals completed year-to-date completed in 7-week period around U.S. elections (weeks 41 - 47). M & A activity has increased in nearly every sector YTD in 2016 vs. 2015. Cultivation & Retail most active sector with cultivators seeking economies of scale as commoditization of cannabis puts downward pressure on prices and margins. Public companies continue to be most aggressive acquirers as stabilizing stock prices are used as currency for acquisitions. Activity in Investments/M & A sector driven by appeal of synergies and diversification provided by holdings in multiple portfolio companies.
Transactions by Sector for Week Ended December 2, 2016
Capital Raises
Agriculture Technology
Lighting Science Group Corp. Form 8-K Detailing Issuance of Series J Preferred Stock
Cultivation & Retail
Canopy Health Innovations - Cannabis, Research, and Intellectual Property Creation
Aphria Announces Closing of Bought Deal Financing
High Hampton Increases Private Placement to C$2 Million
Terra Tech Corp. Form 8-K Detailing Investment Agreement
Valens Groworks Announces Private Placement and Stock Option Grant
Infused Products & Extracts
Lexaria Receives US$737,500 from Exercise of Warrants
Software/Media
Seattle Startup Raises Cash for Cannabis Industry Software
Mergers & Acquisitions
Agriculture Technology
Scotts Miracle-Gro Exercises Outstanding Warrants to Achieve 80% Beneficial Ownership Stake of AeroGrow International
Cultivation & Retail
Canopy Growth Enters into Agreement to Acquire Mettrum
New Age Farm Acquires Additional 21,000 sq. ft.Greenhouse for its Washington State Cannabis Facility
Canopy Growth Establishes Germany Based Operations Through the Acquisition of Licensed Distributor, MedCann GmbH
Investments/M & A
Liberty Leaf Signs Second MOU to Acquire Interest in Oakland, CA-Based Cannabis Cultivator and Manufacturer of Value-Added THC/CBD Products
Marapharm Ventures, Inc. Announces Purchase of Remainder of Shares of EcoNevada, LLC, Purchase of 1.1 Acres, and Discussions with Casinos for ACM Placements
Software/Media
Jerrick Expresses Interest in Potential Acquisition of Wizard World, Inc.
Capital Raise and M & A
Investments/M & A
Invictus MD Closes C$12 Million Private Placement and Updates on North America-Wide Acquisitions
Go-Public Transaction
Biotech/Pharma
CanniMed Therapeutics Inc. Announces Filing of Preliminary Prospectus
Cultivation & Retail
ICC Begins Trading on the TSX Venture Exchange and Provides Operational Update
Infused Products & Extracts
Kushtown USA and Finore Working to Finalize Transaction
Real Estate
Innovative Industrial Properties Prices Initial Public Offering
Capital Raise and Go-Public Transaction
Cultivation & Retail
Saber Capital Corp. Announces TSXV Conditional Approval, Confirmation of the Short Form Offering Term, and Filing on SEDAR of Filing Statement
New University Cannabis Fund
Miscellaneous Ancillary
CSU-Pueblo Marijuana Research Institute Funds Finalized
DTC Eligibility
Agriculture Technology
GrowGeneration Secures DTC Eligibilit
To Learn More About the Viridian CANNABIS DEAL TRACKER Contact:
Harrison Phillips
Viridian Capital Advisors, LLC
(212) 485-0284
* 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 (www.viridianca.com) 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.
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