Total capital raised YTD in 2021 is $11.3B, averaging $48.2M with only one debt issue closed for a total proceed of $150 million.
US equity raises are up 109%, and US debt raises are up 7,735% compared to 2018. Canadian raises are off sharply, with equity raises down 75% and debt down 15%.
It's expected that capital raises continue to tilt towards debt issuance. Companies with positive cash flow should take advantage of the solid liquidity and attractive terms offered in the debt market. Companies should willing to trade off a slightly higher coupon for better prepayment terms.
There have been 191 US targeted M&A transactions YTD with a record $8.5 Billion in total consideration. Both transaction numbers and total consideration exceed the values recorded in each of the last two full years.
An important driver of the acceleration we are witnessing in U.S. M&A is the continuing valuation gap we have discussed between the most prominent companies and everyone else. This near-arbitrage makes almost every acquisition by large MSOs accretive on an EBITDA per share basis. The stocks of the big MSOs are down YTD, but their targets are down even more, and the acquisition logic remains intact.
Show Notes:
Viridian Cannabis Deal Tracker - Week Ending November 12th, 2021
https://www.viridianca.com/deal-tracker/cannabis-deal-tracker-week-45-2021
Host:
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
https://www.linkedin.com/in/joshkincaid/
Episode 821 The Talking Hedge:
Your Cannabis Business Podcast.
Covering cannabis products, reviews, business news, interviews, investments, events, and more.
https://www.theTalkingHedgepodcast.com
Music Info:
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018Artist: LuxrayBeats
Keywords:
Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks, Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data
Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers. This is only entertainment.
