July 2019 Cannabis Transactions
There were 62 transactions in the North American Cannabis sector in July 2019, including 36 private placements, 4 public offerings, 18 mergers & acquisitions and 4 shelf registrations, with a total value of C$1.8 billion. Total deal volume increased by 35% over July 2018 and transaction value increased by 10%.
On July 8, Green Growth Brands Inc. announced the acquisition of MXY Holdings, LLC, PurePenn, LLC and Pure CA, LLC a privately held producer of cannabis concentrates and related products in the United States for $310 million in an all stock transaction. MXY, operating as Moxie, currently features award-winning brands and strong customer loyalty across its retail network of over 250 dispensaries in California, Nevada, Arizona, Pennsylvania, and New Jersey. The combination of Moxie and Green Growth Brands is said to create a “360 degree” cannabis company given GGB’s current 61 CBD focused retail kiosks, as well as the new depth the firm will see within its cannabis operations.
July also saw a number of private placements and public offerings in the cannabis space, with the largest being: Innovative Industrial Properties, Inc., a real estate cannabis investment firm based in San Diego, California, raised US$188.4 million, TILT Holdings, vertically-integrated infrastructure and technology platform that delivers comprehensive solutions to the cannabis industry, raised US$125 million in convertible debentures, and Auxly Cannabis Group, an international cannabis company, received US$123 million in a strategic investment from tobacco maker Imperial Brands.
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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