Cannabis SPAC Investors Are Back!

This year’s $600 million is the 2nd highest total capital raised since Viridian began tracking the cannabis industry in 2015.

The average transaction size has also accelerated to near record levels and is the proximate cause for the upswing in total capital raises. The number of capital raise transactions, although rising slightly from the doldrums of 2020, has actually been trending downward since 2018.

The previous peak of $1.1 billion was driven by two large SPAC IPOs: Subversive ($575M) and Bespoke ($350M). Similarly, this quarters upswing was fueled by three large SPAC IPOs: Tuatara ($175M), Silver Spike II ($250M), and Choice ($150M).

Viridian tracked approximately $3.9 billion of cannabis SPAC IPOs. Several SPACs have struggled to find large enough targets to meet their qualifying transaction thresholds and have been forced to put a number of transactions together and attempt tricky simultaneous transaction closes.

Viridian expected to see smaller cannabis SPAC IPOs, however, the first quarter’s activity ran counter to that expectation, suggesting an increased confidence on the part of sponsors that listing requirements may be done sooner than the required deadline(s).

Show Notes:
SPACs Are Back!
https://www.viridianca.com/chart3

Host:
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
https://www.linkedin.com/in/joshkincaid/

Episode 693 of The Talking Hedge:
Your Cannabis Business Podcast.
​Covering cannabis products, reviews, business news, interviews, investments, events, and more.
https://www.theTalkingHedgepodcast.com

Music Info:
Song: Beat | Keep On | 2020
Artist: Milochromatic Beats
&
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018
Artist: LuxrayBeats

Keywords:
Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks, Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data

Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers.

Posted in Investors

1 Comment

  1. Woody Stemms on September 8, 2022 at 5:22 am

    "The Money" keeps moving into areas that have potential for long term profits above those of traditional equities. Cannabis and residential real estate have both seen "bubble" growth rates.
    The shakeout could be brutal, but in the final analysis, we’re all just along for the ride. It might be interesting to graph the number of "seed companies" both here and abroad. Another bubble?