As debt raises continue to increase for large and smaller operators, Viridian has calculated an “effective cost” analysis to truly arrive at cost of capital for borrowers. Our calculation explicitly values all embedded options including convertibility and any warrant coverage. We also take into account Original Issue Discount and amortization features as well as any mandatory premium liquidation price. The “effective cost” is the yield to maturity based on issue price less option values.
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 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:
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Industry Sector (one of 12 sectors, from Cultivation to Brands)
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Dollar value of the transaction
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Region in which the deal occurred (country or U.S. state)
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Status of the company announcing the transaction (Public vs. Private)
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Deal structure (equity vs. debt)
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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.
Photo by Javier Hasse.
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