Weekly Deal Watch: Cultivation and retail continue to dominate cannabis investment

The marijuana retail and cultivation segment continues to lead the pack with regard to capital raises and acquisition activity.

Year-to-date, the sector has raised a total of $3.2 billion and completed 48 M&A deals.

That compares with $1.55 billion and 17 deals for the same period last year.

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 April 19.

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Top raises closed last week:

• Greenlane Holdings, a distributor of vapes and other cannabis-related products, closed its Nasdaq IPO, raising $102 million in the process. The company now trades under the ticker symbol GNLN.
• Zenabis, a Vancouver, British Columbia-based cannabis cultivator, closed an equity offering of 28.7 million Canadian dollars ($21.3 million). The proceeds will mainly be used to expand cultivation facilities.
• Village Farms International, a Canadian greenhouse grower with a 50% stake in cannabis business Pure Sunfarms, closed a CA$20 million equity offering, which will be used for working capital needs, including for the company’s U.S. hemp operations.

Top M&A deals closed last week:

• Acreage Holdings (CSE: ACRG.U) bought Portland-based Form Factory for $160 million. Form Factory is a marijuana-infused edibles producer and distributor. 
• Cannabis One Holdings (CSE: CBIS) bought certain assets of privately owned Denver-based JBC Enterprises (dba Fat Face Farms).
• Canopy Growth (NYSE: CGC; TSX: WEED) closed its acquisition of Spanish cannabis cultivator Canamo Y Fibras. The Spanish company, based in Alicante, cultivates marijuana in a 1,600-square-foot facility and is licensed to produce hemp as well.

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.