There were 47 transactions in the North American Cannabis sector in September 2019, including 26 private placements, 6 public offerings, 10 mergers & acquisitions and 5 shelf registrations, with a total value of C$2.4 billion. Total deal volume increased by 262% over September 2018 and transaction value increased by 723%.
With the combination of increased use of debt financing, tightening capital markets and a shakeout of winners and losers in growing, processing and distribution, insolvencies are a certain issue in the near future. But, there are very real obstacles to restructuring a cannabis business in both the US and Canada, certainly when compared to traditional industries.
There were 40 transactions in the North American Cannabis sector in August 2019, including 23 private placements, 2 public offerings, 9 mergers & acquisitions and 6 shelf registrations, with a total value of C$2.1 billion. Total deal volume increased by 5% over August 2018 and transaction value decreased by 62%.