Following a series of conversations in 2019 about restructuring and financing businesses, Martinis With Scott invited a former lender and corporate fixer to give a candid perspective on turnarounds.
There were 33 transactions in the North American Cannabis sector in October 2019, including 17 private placements, 4 public offerings, 8 mergers & acquisitions and 4 shelf registrations, with a total value of C$619 million. Total deal volume decreased by 57% over October 2018 and transaction value decreased by 77%.
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.