Weekly Deal Watch: Cannabis capital raises outpace record 2018 levels

North American cannabis companies have raised nearly $3.3 billion so far this year, outpacing the record funding levels set in 2018, according to the latest data from Viridian Capital Advisors.

Each week Marijuana Business Daily and Viridian Capital Advisors provide 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, is through the week ended March 8.

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Top raises closed last week included:

• Altria Group’s record-breaking investment of 2.4 billion Canadian dollars ($1.8 billion) in Ontario-based cannabis producer Cronos Group (TSX: CRON; Nasdaq: CRON) – a deal that completes what is so far the largest investment by a tobacco company in the cannabis space. The investment gives Altria (NYSE: MO) a 45% stake in Cronos. Altria also has a warrant that, if exercised, would bump its ownership in the integrated marijuana firm to 55%.
• Vancouver, British Columbia-based International Cannabis Corp. (CSE: WRLD.U) closed a $45 million private raise, funds the firm plans to use for working capital. ICC also closed a $13.5 million equity raise last week.

Key M&A deals closed last week:

• Alberta’s Aurora Cannabis (TSX: ACB) closed on its acquisition of privately held, British Columbia-based Whistler Medical Marijuana Corp. – one of Canada’s first licensed producers – for CA$175 million ($131 million) in an all-share transaction. The acquisition will add Whistler’s recognized cannabis brand to Aurora’s portfolio. It also provides Aurora a proven export channel.
• CIJ Holdings, a North Carolina-based cannabis investment and holdings company, finalized its acquisition of Grown 2 Gold, a North Carolina hemp grower and processor. Terms of the deal were not disclosed. The merger gives Grown 2 Gold working capital and resources to cultivate and manage about 1,000 acres of North and South Carolina cannabis, according to a news release.

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.