We're fortunate to have thought leaders like Peter Su, CTP, CCBP, CCCE, GRCP, GRCA, IDPP, ACBP, CBE on our advisory board. Excited to hear more from him and Frank Colombo, CFA, Steven Ernest, Emily Paxhia, and Adam Goers at #MJBizCon2024. Shout out to the team at Viridian Capital Advisors for their valuable insights on #cannabisfinance and #cannabisdebt
Cannabis Banking | Specialist in new markets & strategies | Official Member - Rolling Stone Cannabis Culture Council | Board Member - Asian Cannabis Roundtable | Advisory Board Member - The Cannabis Summit & CTrust
??????The U.S. cannabis industry raised approximately $890M in debt and equity capital YTD through October 2024! (Interlude/explanation-Prepping for our panel MJBizCon and our moderator, Frank Colombo, CFA, from Viridian Capital Advisors came prepared with notes! His notes/analysis was so good, I asked for his permission to turn his prep notes into a LinkedIn post. So all these nuggets are attributed to him! Check out more of Frank 's work at Viridian Capital Advisors! Apologies for the interlude - but you know, thumb stopper...) ●98% of that was debt capital, and approximately 82% of that debt was earmarked for refinancing of existing debt ○Debt has been over half of all capital raises in every year since 2020 with only a dip to 47% in 2021. ●For all intents and purposes, Debt is the only game in town ○Strangely, it is the very promise of legislative/regulatory reform like S3, SAFER, etc that has locked up the equity market. [This is certainly not what Viridian Capital Advisors projected for the year. We believed that as the timeline toward rescheduling grew nearer, equity prices would begin to drift upward and MSOs would take advantage of an opportunity to raise equity and pay down some debt, repairing balance sheets that had become overleverged Investors, however, having been fooled too many times are taking a “we will believe it when we see it” approach. Recently, one of the key catalysts for overall industry growth, Florida, failed to materialize, dragging prices back to nearly where they were before HHS first announced their S3 decision in August 2023. Pending, some new catalyst materializing, no one wants to issue equity. Companies find current prices to be below intrinsic value and dilutive. And no CFO wants to be the guy that raises equity at a low price only to have some catalyst like S3, SAFER etc pump his prices well over where he issued stock. From an investors point of view, any company raising equity in this environment must be considered desperate and the price has to be extra cheap.] Want to hear more? Come check out this panel discuss this topic at MJBizCon! (link in comments)