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.

• The chart arranges all U.S. States into the Midwest, South, Northeast, and West regions in order of total capital raised. The colored bars show the amount raised by sector.

• In the LTM ended 8/26/22, companies located in 23 U.S. states raised capital. Sixteen states raised over $10M, accounting for 86.7% of the $5,474M total volume.  

• Unsurprisingly, companies in the West region, which includes Arizona, California, Colorado, Oregon, Washington, Nevada, and Oregon, raised the most capital in the LTM period. What IS surprising is how little of the region’s total (20%) was for companies in the Cultivation & Retail sector (green bar). The West region raised less capital for Cultivation & Retail than any other region.

• The West region had a more diversified list of sectors raising capital. The largest sector, software (red bar), was due to Oregon-based Dutchie. Real Estate (light blue bar) was the second largest, primarily due to California-based  Innovative Industrial Properties IIPR and Pelorus (private).

• The largest share of Cultivation & Retail capital raise activity in the LTM period occurred in the Northeast region, including the states of Connecticut, Maryland, Massachusetts, New Jersey, New York, and Pennsylvania, as companies in these states funded expansions in grow facilities and dispensaries.

• We expect significant growth in the next six months in Midwest and South states, including Ohio, Missouri, Illinois (new licenses), Virginia, and Arkansas. Investors should be looking for opportunities in these markets.

The Viridian Capital Chart of the Week highlights key investment, valuation and M&A trends taken from the Viridian Cannabis Deal Tracker.

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. The Deal Tracker is a proprietary information service that monitors capital raise and M&A activity in the legal cannabis, CBD, and psychedelics industries. Each week the Tracker aggregates and analyzes all closed deals and segments each according to key metrics:

• Deals by Industry Sector (To track the flow of capital and M&A Deals by one of 12 Sectors - from Cultivation to Brands to Software)

• Deal Structure (Equity/Debt for Capital Raises, Cash/Stock/Earnout for M&A) Status of the company announcing the transaction (Public vs. Private)

• Principals to the Transaction (Issuer/Investor/Lender/Acquirer) Key deal terms (Pricing and Valuation)

• Key Deal Terms (Deal Size, Valuation, Pricing, Warrants, Cost of Capital)

• Deals by Location of Issuer/Buyer/Seller (To Track the Flow of Capital and M&A Deals by State and Country)

• Credit Ratings (Leverage and Liquidity Ratios)

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.

Photo by Javier Hasse.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.