There were 55 transactions in the North American Cannabis sector in February 2019, including 33 private placements, 2 public offerings, 16 mergers & acquisitions and 4 shelf registrations, with a total value of C$1.3 billion. Total deal volume increased by 17% over February 2018 and transaction value increased by 123%.

Some of the most significant transactions in the cannabis space included:

On February 4, 2019, MedMen Enterprises Inc. announced the acquisition of ICH California Holdings, Ltd. from Captor Capital Corp. for approximately $32 million in an all share transaction.  ICH is the Vancouver-based owner and operator of retail cannabis dispensaries.

On February 7, 2019, Canopy Rivers Inc. announced a private placement of 6.25 million shares at $4.80 per share for gross proceeds of a minimum of $30 million from existing investor Canopy Growth Corporation, which will hold 27.3% stake in Canopy Rivers upon closing.  The transaction price is equal to the February 6 closing price of Canopy Rivers on the TSX-V.

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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