Momentum in the cannabis industry is building at an unprecedented rate. The industry is on pace to raise over US$8 billion by the end of the year, up from US$3.5 billion in 2017. As we move toward the October 17th launch of Canada’s legal adult-use and medical market, a flurry of major capital markets transactions have occurred.
To help you stay up-to-date on the latest, we’ve listed out some of the most noteworthy mergers, acquisitions, and capital raises of the past month.
Significant Capital Investments and Activity
- Beverage giant Constellation Brands invests a record-breaking US$4 billion into Canopy Growth Corporation, taking a 38% ownership stake in the Canadian cannabis company.
- Ancillary cannabis company Kush Bottles, Inc., manufacturer of packaging and other supplies, announces launch of Kush Supply Co., a new subsidiary serving the Canadian cannabis market.
- US-based medical cannabis company Surterra Wellness announces William “Beau” Wrigley, Jr. has joined the Board of Directors as Chairman following July’s US$65 million in Series C equity fundraising.
- Cannabis REIT, Innovative Industrial Properties, Inc., acquires and invests US$13 million in Michigan cultivation and processing property.
IPOs, RTOs and other Capital Raises
- Colorado-based CBD company, Charlotte’s Web Holdings, Inc., goes public in Canada and boosts IPO and Secondary Offering to 6.45 Million Shares, earning the company over US$71,000,000.
- California-based cannabis manufacturer Plus Products files preliminary prospectus to seek IPO on the CSE.
- After a ground-breaking IPO in July, Canadian cannabis company Tilray, Inc. announces 95% growth in Q2 revenue.
- Colombian Cannabis Operator PharmaCielo Ltd. raises over US$30 million ahead of public offering on TSXV.
- California-based retailer and cultivator Harborside (FLRish Inc.) announces plan to go public in Canada via RTO with Lineage Grow Company Ltd.
- Canadian cannabis operator Maricann Group Inc. announces it has raised ~US$37.4 million via private placement of special warrants.
- Canadian cannabis operator INVICTUS MD STRATEGIES CORP. secures nearly US$20 million in debt financing from ATB Financial to fund expanded cultivation facilities.
- MJardin spin-off GrowForce Holdings Inc. gains nearly US$30 million in equity capital raise to fund further acquisitions in Canada.
- Medical cannabis company Vireo Health, Inc. raises US$16 million ahead of public offering on CSE.
Mergers and Acquisitions
- Canadian cultivator Cronos Group Inc. enters Latin American cannabis market via partnership with Colombian agriculture giant Agroidea SAS.
- Canadian cannabis company Golden Leaf Holdings Ltd. announces acquisition of Nevada cultivator Tahoe Hydroponics Company and 11T Corp for over US$40 million.
- Canopy Growth Corporation further consolidates holdings in Latin America with full acquisition of Chilean in-market entity, Spectrum Cannabis Chile SpA.
ELLO’s Capital Markets Advisory Group provides services informed by years of experience supporting cannabis companies through the cycles of growth, acquisition, and financing. Powered by our proprietary database of market and transaction intelligence, we provide valuable insight into valuations, capital raising, and strategic deal making. To learn more or schedule a consultation, contact us today.