There were 147 transactions in the North American Cannabis sector in second quarter of 2020, including 82 private placements, 19 public offerings, 26 mergers & acquisitions, 1 buybacks and 19 shelf registrations, with a total value of C$4.3 billion. Total deal volume decreased by 27% over the second quarter of 2019 and transaction value decreased by 61%.
In Q2 2020 several cannabis sector companies announced shelf registrations:
Columbia Care Inc. ($500 million), Acreage Holdings ($408 million), Harvest Health & Recreation ($300 million), Village Farms International ($283 million), Auxly Cannabis Group ($200 million) and Cronos Group ($167 million).
There were also several large public offerings: Aurora Cannabis ($353 million) and Innovative Industrial Properties ($306 million).
On May 20, Aurora Cannabis announced the acquisition of Reliva LLC, a privately-held distributor of hemp-derived cannabidiol products. The total consideration of the transaction is $81 million, including a potential earn-out of up to a maximum of $45 million payable in shares of Aurora Cannabis, cash or a combination thereof, over the next two years contingent upon Reliva achieving certain financial targets.
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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