There were 453 transactions in the North American Metals & Mining sector in third quarter of 2019, including 319 private placements, 46 public offerings, 67 mergers & acquisitions, 1 buybacks and 20 shelf registrations, with a total value of C$54.9 billion. Total deal volume increased by 2% over the third quarter of 2018 and transaction value increased by 177%.
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.