There were 33 transactions in the North American Cannabis sector in December 2019, including 20 private placements, 5 public offerings, 6 mergers & acquisitions and 2 shelf registrations, with a total value of C$587 million. Total deal volume decreased by 25% over December 2018 and transaction value decreased by 27%.
December 2019 saw several public offerings including: C$55 million raised by each OrganiGram Holdings and Cresco Labs, and C$32.8 million raised by HEXO Corp.
On December 17, 2019 Akerna Corp., cannabis compliance technology company, through a subsidiary, announced acquisition of Ample Organics Inc., a seed-to-sale platform company for C$60 million. The consideration includes C$7.5 million in cash, issuance of 3.3 million redeemable preferred shares and up to C$10 million stock-based deferred consideration upon achieving certain revenue target.
Calculations include asset purchases and sales, joint ventures and minority and majority shareholdings that disclosed a transaction value and were announced within the time frame. Cannabis industry definition includes cannabis products producers as well as supporting industries such as suppliers, laboratories, and security, among others. Cancelled transactions were excluded. Exchange rates based on historical figures. All currency in Canadian dollars.
Sources: Capital IQ, analyst research.
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