10 May 2017
The cannabis industry is growing at an unprecedented pace, showing signs of expansion across the board. In fact, 2017 has seen marijuana-related companies raise more than $733 million in the first four months of the year, Viridian Capital Advisors Vice President Harrison Phillips told Benzinga in a recent chat.
This figure compares to $124 million raised over the first 4 months of 2016. However, the number of deals for the period year-to-year was pretty similar: 123 for 2017 versus 104 for 2016. What this indicates is the size of deals is increasing substantially. Viridian’s data also shows there has been a considerable shift from debt raises to equity raises, suggesting increased risk tolerance in the capital markets.
“We tracked over $1.2 billion in capital raised by cannabis-related companies in 2016. A lot of the capital was raised in the second half of the year, around the elections,” Phillips explained. “What we have seen so far this year is the opening up of new markets like California and Canada driving investor sentiment and additional capital raises.
Thanks to for sourcing the information
Andrew B. Sacks,
Sacks Weston Diamond