November 2019 Cannabis Transactions
There were 41 transactions in the North American Cannabis sector in November 2019, including 28 private placements, 3 public offerings, 8 mergers & acquisitions and 2 shelf registrations, with a total value of C$0.8 billion. Total deal volume decreased by 37% over November 2018 and transaction value decreased by 64%.
On November 5, 2019 Columbia Care Inc. acquired The Green Solution, LLC from Speidell family for $140 million. The Green Solution currently operates 21 revenue-generating dispensaries in Colorado with two additional stores under development and one of the country’s largest capacity, single site, automated manufacturing facilities that currently produces over 225,000 units of branded products every month. The consideration consisted of $110 million of Columbia Care shares, a $15 million promissory note, $15 million in secured debt with the potential for additional performance based milestone payments in 2021. The Green Solution reported LTM revenues of approximately $73.3 million.
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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