Cannabis Chart Of The Week: Are U.S. Cultivation & Retail Capital Raises About To Swing Upward?
The Viridian Chart of the Week shows U.S. Cultivation & Retail sector capital raises, which are up 48% YTD from 2023, albeit from a historically low base. The increase contrasts with a 22.0% decline for all cannabis-related sectors worldwide and a 32.5% decline of all U.S. cannabis raises.
The green bars on the graph show equity raises and are coded so that the darker colors depict more significant issues. The dark green bar in 2021 shows the wave of large equity issues in which five of the ten most significant equity issues in cannabis history occurred. The dark orange and peach-colored bars show debt issues. The darker the bar, the larger the issue size.
Note that in 2023 and 2024, no debt or equity issues larger than $100M have occurred.
The licensed operators have been financed almost exclusively with debt since 2022, and midsized debt issues of $25M – $100M have accounted for more than half of all capital raised for the last …