There were 48 transactions in the North American Cannabis sector in January 2020, including 26 private placements, 7 public offerings, 11 mergers & acquisitions and 4 shelf registrations, with a total value of C$1.1 billion. Total deal volume decreased by 0% over January 2019 and transaction value decreased by 77%.
There were a number of financing transactions in January 2020: Innovative Industrial Properties announced $286 million public offering which it has since closed; SHE Beverage Company, Inc. announced a public offering of $196 million; HEXO Corp. announced a public offering of $26 million which has since closed; Tetra Bio-Pharma Inc. announced a public offering of $10 million and National Access Cannabis Corp. announced a public offering of $10 million.
On January 2, 2020, Harvest Health & Recreation Inc. agreed to acquire GreenMart of Nevada LLC from MJardin Group, Inc. for $35 million on January 2, 2020. The consideration is payable in cash, comprised of $30 million on upon announcement plus $5 million upon license transfer on closing of the acquisition. GreenMart of Nevada is a state-of-the-art licensed cannabis cultivation entity based in Las Vegas. MJardin acquired GreenMart in September 2018 for $22 million in cash and stock.
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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