The breakneck pace of completed mergers and acquisitions in the marijuana market may perhaps be coming to an finish.
Deal activity was down drastically in September versus a year ago – only 16 this year compared with 29 in 2018.
The quantity of offers in the 1st nine months of 2019, having said that, was nonetheless ahead of 2018 – 278 versus 242.
Cultivation and retail remained the prime mover behind M&A activity in September.
This month-to-month series from Marijuana Enterprise Each day and Viridian Capital Advisors delivers the newest information on cannabis investment activity and M&A, along with important takeaways, evaluation and trends primarily based on current industry moves.
The information beneath is via the week ended Oct. four.
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Total volume of raises slows in September
When the quantity of raises in September 2019 was up more than the exact same month in 2018 – 53 capital raises versus 43 – the total quantity raised was basically down.
In September 2018, the typical raise was $14.7 million for an all round total of $630.four million. This year, September’s typical was $11.three million for an all round figure of $599.1 million.
That is a distinctive profile from the earlier month, when the typical size of each and every raise was practically triple the earlier year’s quantity, resulting in an all round total of $972.eight million raised versus $369.three million in August 2018.
Cultivation and retail dominates even in slower M&A infused goods powerful
As noted, cultivation and retail continued to be the driving force behind completed M&A offers this previous month even as the all round volume slowed.
Specifically half the closed offers in September involved purchasers in that sector.
This is broadly in line with the trend for the 1st nine months of 2019, when 131 purchasers in cultivation and retail have been accountable for a total of 278 closed offers.
The infused goods and extracts segment accounted for 5 of the 16 completed M&A offers in September 2019.
Viridian Capital Advisors is a monetary and strategic advisory firm that delivers investment banking, M&A, corporate improvement and investor relations solutions to emerging development corporations and certified investors in the cannabis sector.