Marijuana Business Factbook 2019

281 Cannabis Business Funding & Investing | Chapter 7 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. MJBIZDAILY.COM CHART 7.07: Sampling Of Major Public & Private Cannabis Company Deals & Capital Raises: January 2018 Through April 2019 When cannabis began to develop as a legal industry, a six-figure raise was a big deal. Now a “big deal” involves hundreds of millions of dollars ― and multibillion-dollar investments are becoming increasingly common. Analysts contend that each of these large deals drives up valuations for marijuana companies across the board and predict that such activity will continue as legal cannabis expands around the globe. Between January 2018 and April 2019, the largest investments involved publicly traded companies, which have outraised private companies by a wide margin: Constellation Brands’ August 2018 $3.8 billion investment in Canopy Growth is 50 times the size of Cura Partners’ December 2018 $75 million private funding raise. Constellation Brands first purchased a 9.9% stake in Canada’s Canopy Growth for $190 million in October 2017 and increased its ownership to 38%, then followed with a $3.8 billion cash infusion in August 2018. This remains the biggest cannabis investment to date and was the first move into cannabis for a Big Alcohol company: Constellation owns, distributes and markets more than 100 liquor brands. This deal fueled Canopy’s ability to conduct land grabs across the United States and internationally, pouring money into both cannabis and hemp companies worldwide. In April 2019, Canopy took advantage of its available cash and position of relative power to announce an agreement to purchase Acreage Holdings for $3.4 billion. Not only does this represent the second-largest marijuana investment, it is also the first major Canada-U.S. cannabis transaction. The deal will not be complete until federal prohibition is repealed in the United States as the continued illegality would impact Canopy’s ability to trade on the New York Stock Exchange and the Toronto Stock Exchange, where it is currently listed.