C A N N A B I S   D E A L   T R A C K E R 

Investment and M&A Activity in the Cannabis Industry 
 
   Summary for the Week Ended March 31, 2017
  • Announcements: 30
    • Capital Raises: 15
    • M&A Transactions: 6
    • Going-Public Transaction: 1
    • Capital Raise & M&A Transaction: 1
    • Capital Raise & Going-Public Transaction: 2
    • Joint Venture: 2
    • New Cannabis Fund: 1
    • New Stock Listing: 2
  • Year-over-Year:
    • 8 capital raises closed this week for a total of $21.1 million ($2.6 million average) compared to 7 raises for a total of $6.5 million ($0.9 million average) this week last year.
    • 2 M&A deals closed this week compared to 0 deals in the same week last year.
  • Israeli cannabis biotech/pharma company Therapix Biosciences completed its IPO onto the NasdaqCM exchange.
  • We have tracked nearly $460 million in capital raises closed by cannabis companies year-to-date, with the top sectors being:
    • Cultivation & Retail: $191.4 million
    • Biotech/Pharma: $123.6 million
    • Investments/M&A: $43.2 million
  • M&A activity in Investments/M&A sector follows trend of accelerating M&A activity in overall cannabis sector:
    • We tracked an average of 1.4 deals closed per week in the first three quarters of 2016 compared to 3.2 deals closed per week from the start of the fourth quarter of 2016 to date in 2017.
 
 
     Capital Raises
  • Therapix Biosciences Ltd. (NasdaqCM: TRPX) raised $12 million through an initial public offering (IPO) of American Depository Shares (ADSs) and plans to use the proceeds to advance the formulation and clinical development efforts for its two lead product candidates, including Phase II clinical trials, and for working capital and other general corporate purposes.
  • Resolve Digital Health raised C$5 million in a Series A round to commercialize its metered-dose cannabis inhalation device.
  • Marapharm Ventures, Inc. (CSE: MDM) received C$3.6 million through the exercise of warrants which it plans to use for acquisition opportunities, particularly those in California.
  • Civilized Worldwide, Inc.*, a media company and 360° lifestyle brand that elevates cannabis culture, closed on $1 million of its ongoing $3 million private placement which it plans to use to accelerate growth and monetization of their platform.
  • Revive Therapeutics Ltd. (TSXV: RVV) received C$1.1 million through warrant exercises which it plans to use for general corporate purposes.
  • Massroots, Inc. (OTCQB: MSRT) received $450,000 through warrant exercises which it plans to use to increase its market share.
  • Breakwater MB received a $250,000 investment from ChineseInvestors.com (OTCQB: CIIX).
  • Alliance Growers Corp. (CSE: ACG) raised C$192,000 through a private placement.

Week Ended 3.31.17 - Capital Raises by Sector

 
     Mergers & Acquisitions
  • Aphria, Inc. (TSX: APH) increased its membership interest in Copperstate Farms, a licensed producer of medical cannabis in the State of Arizona, through additional interest into Copperstate Farms Investors, the majority owner of Copperstate Farms.
  • CaliPharms, Inc. (OTCPink: KGET) executed a stock purchase agreement to acquire 51% of Pacific Cannabis Growers, a medical cannabis farm in Humboldt County, California, through a structured buyout over 5 years.

Week Ended 3.31.17 - M&A Deals by Sector
   Summary of Year-to-Date Transactions

     Capital Raises
  • We have tracked 94 capital raises totaling $455.4 million.
  • Public versus Private:
    • Public companies: 68 raises totaling $421.2 million
    • Private companies: 26 raises totaling $35.1 million
  • Equity versus Debt:
    • Equity: 74 raises totaling $425.8 million
    • Debt: 20 raises totaling $30.6 million

YTD Capital Raises by Week
    
YTD Capital Raises by Sector
 

     Mergers & Acquisitions
  • We have tracked 38 M&A transactions.
    • 34 deals by public companies
    • 4 deals by private companies
  • M&A activity in the Cultivation & Retail sector has been driven primarily by existing operators seeking strategic acquisitions and synergies to bolster their competitive positioning and increase market share.
  • M&A activity in Agriculture Technology sector points to continued development and implementation of more advanced growing technologies as cultivators seek to maximize efficiency and to lower costs amid pricing pressure.
  • Activity in Investments/M&A sector follows trend of accelerating M&A activity in cannabis sector
    • Average of 1.4 deals closed per week in first three quarters of 2016 compared to 3.2 deals closed per week from the start of the fourth quarter of 2016 to date in 2017.
 
YTD M&A Deals by Week
 
YTD M&A Deals by Sector

Transactions by Sector for Week Ended March 31, 2017

Capital Raises

Biotech/Pharma
Cara Therapeutics Announces Proposed Offering of Common Stock

Cara Therapeutics Announces Pricing of Its Public Offering of Common Stock

Revive Therapeutics Provides Corporate Update

Zelda Therapeutics Successfully Completes Oversubscribed Capital Raising of A$6,000,000


Consulting Services
BCC Announces C$20 Million Private Placement of Common Shares

ChineseInvestors.com Announces Investment in Breakwater MB, LLC a Cannabis-Focused Investment and Consulting Company


Consumption Devices
Resolve Digital Health Raises C$5 million to Debut the First Standardized Patient Experience for Medical Cannabis


Biotech/Pharma
Montgomery Co. Medical Marijuana Group to Raise $4 Million in Early Funding

SG Spirit Gold Launches Financing Related to Acquisition of ACMPR License Applicant Northern Lights Marijuana Company

RockGarden Announces $1.5 Million Financing to Complete Phase 1 of Cannabis Production Facility

Alliance Growers Closes off Private Placement, Cancels Stock Options, Amends Pricing of Shares for Debt


Infused Products & Extracts
Creso Pharma Announces Heavily Oversubscribed Placement and Share Purchase Plan

Stemcell United Ltd. – Proposed Issue of Securities


Investments/M&A
Marapharm Announces C$3,570,000 of Warrants Exercised for First Quarter of 2017


Software/Media
MassRoots Receives US$450,000 in Proceeds from Early Exercise of Warrant by Aphria



Mergers & Acquisitions

Biotech/Pharma
Rising India Inc. Executes Definitive Merger Agreement with Rising BioSciences, Inc.


Cultivation & Retail
Aphria Strengthens US Investment Platform, Increases Position in Copperstate Farms Investors to 18.5%

CaliPharms Expands its Operations with the Acquisition of Pacific Cannabis Growers


Infused Products & Extracts
Golden Leaf Signs Binding Letter of Agreement to Acquire Cannabis Licenses in Nevada*


Miscellaneous Ancillary
Brassneck Capital Corp. Announces Letter of Intent for Proposed Acquisition by National Access Cannabis Corp.


Software/Media
CannaSys, Inc. Announces Acquisition of Alliance Financial Network, Inc.*



Going-Public Transaction

Cultivation & Retail
Panda and ABcann Medicinals Announce Conditional Approval of Qualifying Transaction



Capital Raise and M&A Transaction

Investments/M&A
Invictus MD Announces OptionCo Has Received its License to Cultivate under ACMPR



Capital Raise and Going-Public Transaction

Biotech/Pharma
Therapix Biosciences Ltd. Announces Closing of U.S. Initial Public Offering of American Depositary Shares; 2,000,000 American Depository Shares Priced at $6.00 per ADS

Aurora Cannabis to be Cornerstone Investor in Australian Medical Cannabis IPO



Joint Venture

Agriculture Technology
Indoor Harvest Corp. Entered into Joint Venture Agreement


Infused Products & Extracts
Green Cures & Botanical Distribution Inc. Announces Joint Venture with Kushtown Soda



New Cannabis Fund

Investments/M&A
Horizons ETFs to Launch First Marijuana ETF



New Stock Listing

Cultivation & Retail
OTC Markets Group Welcomes Aurora Cannabis to OTCQX


Investments/M&A
Invictus MD Announces Conditional Approval to List on the TSX Venture Exchange

To Learn More About the Viridian CANNABIS DEAL TRACKER Contact:

Harrison Phillips
Viridian Capital Advisors, LLC
(212) 209-3086
hphillips@viridianca.com

*Disclaimers
The information contained herein is for informational purposes and is not intended as a research report. It should not be construed as Viridian recommending investment in cannabis companies or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in cannabis companies entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Viridian Capital Advisors and its affiliates, as well as their respective partners, directors, shareholders, and employees, may have a position in the securities mentioned herein and may make purchases and/or sales from time to time. Viridian Capital Advisors, through broker-dealer services provided by Pickwick Capital Partners, LLC, (Member FINRA/SIPC), may act, or may have acted in the past, as a financial advisor for certain of the companies mentioned herein and may receive, and may have received, a remuneration for their services from those companies.

About the Viridian Cannabis Deal Tracker
The Viridian Cannabis Deal Tracker monitors capital raise, mergers & acquisition, joint venture, and licensing activity for both public and private companies in the legal cannabis industry across 12 key sectors, including Agriculture Technology, Biotech/Pharma, Consulting Services, Consumption Devices, Cultivation & Retail, Hemp, Investments/M&A (Holding Companies), Infused Products & Extracts, Miscellaneous Ancillary, Physical Security, Real Estate, and Software/Media. 

Integrating more than 3 years of data collection, segmentation, and analysis, the Viridian Cannabis Deal Tracker supports decision-making by providing sector-specific actionable intelligence and trend analysis in regard to issuers, investors, acquirers, valuations, deal structures, and deal terms.

The above information whether in part or in its entirety neither constitutes an offer nor makes any recommendation to buy or sell any securities.

About Viridian Capital Advisors, LLC
Viridian Capital Advisors (www.viridianca.com) is a financial and strategic advisory firm dedicated to the cannabis market. We are a data- and market intelligence-driven firm that provides investment banking, M&A, corporate development, and investor relations services to emerging growth companies and qualified investors in the cannabis sector. Our banking practice, through broker-dealer Pickwick Capital Partners, LLC (Member FINRA/SIPC), provides capital and M&A to fund the growth of our clients, while our advisory practice helps to position and build their businesses. Our team’s decades of high level operating and transactional experience on Wall Street in a variety of emerging sectors, allows Viridian to provide comprehensive strategic and financial solutions that assist cannabis enterprises in realizing their full potential.
Copyright © 2017 Viridian Capital Advisors, LLC, All rights reserved.

Our mailing address is:

Viridian Capital Advisors, LLC
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New York, NY 10022
 

Broker-Dealer Services Provided Through Pickwick Capital Partners, LLC, A Member of FINRA and SIPC
 

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