Viridian Chart Of The Week: A Changing Of The Guard, Cannabis M&A Moves East

• Viridian reports a key shift in YTD M&A activity by region, with acquisition activity moving to the Eastern part of the country. The passage of adult-use legalization in N.J. this past Election Day was further proof that the Eastern cannabis market is progressing with adult-use legalization, which is driving M&A activity.

• According to data from the Viridian Cannabis Deal Tracker, acquirers have increasingly targeted companies in the East in fast growing medical states, including PA and NY, and newer adult-use states, including NJ, IL and MA. In total, transactions in these states represented 50% of total industry M&A activity year-to-date. M&A activity in these states has focused on cultivation and retail, as competitors' race to add production capacity and retail.

• Over the past month there have been multiple deals announced in the Northeast that are expected to close over the next year.

• M&A activity in Western states, including AZ, CA, CO and NV, has declined from 63.2% of total industry M&A activity, to 40.6%. Acquisitions in Western states have diversified towards the Ag Tech, Software, and Biotech sectors.

The Viridian Cannabis Deal Tracker is a proprietary information service that monitors capital raise and M&A activity in the legal cannabis and hemp industry. Each week the Tracker aggregates and analyzed all closed deals and segments each according to key metrics:

• Industry Sector (one of 12 sectors, from Cultivation to Brands)

• Dollar value of the transaction

• Region in which the deal occurred (country or U.S. state)

• Status of the company announcing the transaction (Public vs. Private)

• Deal structure (equity vs. debt)

• Key deal terms (Pricing and Valuation)

The Viridian Cannabis Deal Tracker provides the market intelligence that cannabis companies, investors, and acquirers utilize to make informed decisions regarding capital allocation and M&A strategy.

Since its inception in 2015, the Viridian Cannabis Deal Tracker has tracked and analyzed more than 2,500 capital raises and 1,000 M&A transactions totaling over $50 billion in aggregate value.

Lead image by Ilona Szentivanyi. Copyright: Benzinga.

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