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 C A N N A B I S   D E A L   T R A C K E R 

Investment and M&A Activity in the Cannabis Industry 
 
   Summary for the Week Ended December 16, 2016
  • 16 announcements:
    • 6 capital raises
    • 7 M&A transactions
    • 1 go-public transaction
    • 1 joint venture
    • 1 new cannabis angel investment group
  • TOTAL DEALS TRACKED PASSES $1 BILLION IN 2016
  • Average capital raise size continues to be greater in 2016 than 2015:
    • 3 capital raises closed this week for a total of $42.1 million (average deal size of $14.0 million) compared to 11 raises for a total of $11.7 million in the same week last year (average deal size of $1.1 million).
  • M&A activity also remains elevated Year-over-Year:
    • 2 M&A deals closed this week compared to 1 deal in the same week last year.
  • The Scotts Miracle-Gro Company (NYSE: SMG) closed two acquisitions as part of its efforts to build-out its Water Positive Landscapes Initiative and Connected Yard Internet of Things (IoT) solution for both indoor and outdoor growing spaces.
  • Capital raise momentum by Canadian licensed producers continues as Supreme Pharmaceuticals, Inc. (CSE: SL) raised C$55 million through a bought deal financing of convertible notes.
 
     Capital Raises
  • Supreme Pharmaceuticals, inc. (CSE: SL) raised C$55 million through a bought deal offering of convertible notes, continuing the capital raise momentum of Canadian licensed producers.
  • Indoor Harvest Corp. (OTCQB: INQD) raised $125,000 through the issuance of a convertible note.
  • United Cannabis Corp. (OTCQB: CNAB) raised $100,000 as a previous debt holder purchased equity.

Week Ended 12.16.16 - Capital Raises by Sector

 
     Mergers & Acquisitions
  • The Scotts Miracle-Gro Company (NYSE: SMG) made two acquisitions to enhance its suite of Internet of Things (IoT) water and connected yard solutions, including:
    • Blossom, a creator of smart water controllers.
    • PlantLink, a producer of soil sensors and a smart water valve system.

Week Ended 12.16.16 - M&A Deals by Sector
   Summary of Year-to-Date (YTD) Transactions

     Capital Raises
  • Raises last week push dollars raised YTD over $1 BILLION.
  • We have tracked 304 capital raises totaling $1,091.9 million:
    • Public companies: 239 raises totaling $836.1 million
    • Private companies: 65 raises totaling $255.8 million
  • Equity raises continue to outperform debt raises in both number of transactions and dollars raised:
    • Equity: 177 raises totaling $889.8 million
    • Debt: 127 raises totaling $202.1 million
  • Capital raise dollar volume spiked in week 49 as cannabis real estate company, Innovative Industrial Properties, IPO'd on NYSE and Canadian licensed producer, Aphria, closed a C$40 million bought deal financing.

YTD Capital Raises by Week
    
YTD Capital Raises by Sector
 

     Mergers & Acquisitions
  • We have tracked 97 M&A transactions.
    • 77 by public companies
    • 20 by private companies
  • Momentum in M&A activity continues surrounding U.S. elections this past November.
  • 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.
 
YTD M&A Deals by Week
 
YTD M&A Deals by Sector

Transactions by Sector for Week Ended December 16, 2016

Capital Raises

Agriculture Technology
The Scotts Miracle-Gro Company Announces Proposed Offering of Senior Notes

Indoor Harvest Corp. Form 8-K Detailing Issuance of Securities Purchase Agreement

Arcturus Signs Definitive Agreement to Acquire 15-Acres of Cannabis Zoned Land


Consulting Services
United Cannabis Corporation Retires $600,000 Note and Receives $100,000 Reinvestment

Cultivation & Retail
Atlanta Medical Marijuana Company Raises $15 Million

Supreme Pharmaceuticals Closes C$55 Million Offering



Mergers & Acquisitions

Agriculture Technology
Scotts Miracle-Gro Acquires Two Technology Companies as Part of Connected Yard and Water Positive Landscapes

Biotech/Pharma
New Panax Acquisition Agreement Signed, Settlement Imminent

Cultivation & Retail
Danbel Ventures, Inc. and MariCann, Inc. Announce Letter Agreement Relating to Reverse Takeover Transaction and Closing of Financing

Infused Products & Extracts
Laguna Extends Letter of Intent with Carlsbad Naturals CBD Bottled Water Company

Investments/M&A
North American Cannabis Holdings Announces Alternet Systems Closing Scheduled December 20, 2016

Bayport International Closes on First Legal Cannabis Acquisition


Software/Media
MassRoots Enters into Definitive Agreement to Acquire Whaxy in Cash and Stock Deal


Go-Public Transaction

Cultivation & Retail
Danbel Ventures, Inc. and MariCann, Inc. Announce Letter Agreement Relating to Reverse Takeover Transaction and Closing of Financing


Joint Venture

Cultivation & Retail
Aurora Cannabis and Radient Technologies Sign MOU on Joint Venture


New Cannabis Angel Investment Group

Investments/M&A
Canna Angels, LLC Announces Launch as Cannabis Legalization Expands Across the Country

To Learn More About the Viridian CANNABIS DEAL TRACKER Contact:
 

Harrison Phillips
Viridian Capital Advisors, LLC
(212) 485-0284
hphillips@viridianca.com

 

* 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.

Copyright © 2016 Viridian Capital Advisors, LLC, All rights reserved.

Our mailing address is:

Viridian Capital Advisors, LLC
5 Bryant Park
1065 6th Avenue
10th Floor
New York, NY 10018

 

Broker-Dealer Services Provided Through Pickwick Capital Partners, LLC, A Member of FINRA and SIPC
 

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