For the first time in three years, capital raises in the cannabis sector increased, according to Frank Colombo, managing director of data analytics and investment banking at Viridian Capital Advisors.
Colombo provided an overview of capital raising trends in the space on Tuesday at the Benzinga Cannabis Capital Conference. He told the crowd gathered in Chicago there's been an increase of 14.8% in capital raises in 2024, driven mostly by Canadian equities and U.S. debt.
Colombo said U.S. debt accounts for over 50% of capital raises, indicating a reliance on debt financing rather than equity in the market. Out of all sectors, retail and cultivation sectors are responsible for half of all capital raises. However, out of 12 different sectors, "investments in M&A” were "really up," he said.
Colombo, along with Scott Greiper, founder and president of Viridian Capital Advisors, gave a presentation discussing the core principles of equity research and investment strategies tailored for the cannabis sector.
Colombo said the U.S. cultivation and retail sectors saw a ...
