Like M&A, debt has moved eastward. California, Colorado, Oregon, and Washington jointly made up 34.5% of 2018 debt but only 5.4% of 2020’s debt. Illinois, Massachusetts and New York accounted for 93.0% of 2020 debt issuance.
The average size of issues is going up from $10.0M in 2018 to $13.7M in 2019 to $55.3M in 2020.
The market has become focused on the larger players. Curaleaf ($300M), Leaflink($250M) , and Cresco ($175M) jointly made up 77.1% of 2020 debt issuance. Aside from these three names, the average issues size drops to approximately $16.5 million.
Viridian expects significant increases in debt issuance as the large MSOs build out new rec states employing the borrowing power of their burgeoining cash flow.
Viridian Capital Advisors' Chart of the Week
Cannabis Debt Financing is Booming Across the U.S.
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
Episode 611 of The Talking Hedge:
Your Cannabis Business Podcast.
Covering cannabis products, reviews, business news, interviews, investments, events, and more.
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