Weekly Deal Watch: Cannabis brands and hemp firms become takeover targets

This weekly series from Marijuana Business Daily and Viridian Capital Advisors provides the latest data on cannabis investment activity and M&A, along with key takeaways, analysis and trends based on recent market moves.

The data below, provided by Viridian Capital Advisors, is through the week ended Feb. 22.

Capital raise highlights:

• Innovative Industrial Properties (NYSE: IIPR), a cannabis industry-focused real estate investment trust, closed a $144 million raise – capital it plans to use to purchase properties to lease back to marijuana operators. “As more investors come in that don’t want to touch the plant, they could be more open to this type of real estate investment opportunity,” said Harrison Phillips, vice president with Viridian Capital Advisors.
• Boston-based Ascend Wellness Holdings, a multistate vertically integrated marijuana operator, closed a $55 million funding round – capital the firm will use to expand in its home state of Massachusetts and other markets, including Ohio. “Massachusetts’ adult-use market operators continue attracting capital due to more near-term growth prospects,” Phillips noted.

M&A highlights:

• Green Thumb Industries (CSE: GTII) of Chicago closed its acquisition of Los Angeles-based For Success Holding Co., owners of the Beboe product line of premium cannabis and CBD-infused products. The all-stock deal, the value of which was not disclosed, underscores growing demand among branded product companies by larger operators looking to boost their product portfolios, Phillips said. “Local and regional brands that are differentiating themselves are generating a lot of interest and remain attractive for acquisition,” he said.
• After the passage of the U.S. Farm Bill, hemp and CBD companies continue to be top acquisition targets as underscored by two recent deals:
  • GNCC Capital’s $120 million acquisition of BioCann Pharma, a CBD oil producer and distributor with offices in Colombia and Burlington, Ontario, Canada.
  • Youngevity International’s $16 million acquisition of Florida-based Khrysos, a manufacturer of hemp-based CBD extraction equipment.

Viridian Capital Advisors is a financial and strategic advisory firm that provides investment banking, M&A, corporate development and investor relations services to emerging growth companies and qualified investors in the cannabis sector.