Scott Greiper, President, Viridian Capital Advisors
The cannabis industry has had a “rollercoaster-like” year in 2020. Despite the continued growth of the industry on a global basis (2019 cannabis industry revenues were up 50% over 2018), the capital markets for cannabis in North America experienced its first major correction beginning in the second quarter of 2019 and continuing into the first quarter of 2020. As public company stock prices fell, capital raises and M&A transactions declined.
However, as COVID-19 began to seriously impact the U.S. in March 2020, the declaration from most governors of legal states that cannabis was an essential service led to record levels of consumption and improved financial performance by public and private cannabis companies. This, in combination with 7 new states legalizing medical and/or adult-use cannabis in November 2020, has pushed stock prices up and led to higher levels of investment and M&A activity.
This session will take a deep dive behind the recover in the cannabis capital markets, highlighting where investors are placing capital and where acquirers are targeting their acquisition activities.