Overview: Q3 cannabis related private placements


The cannabis industry initiated 23 private placements during Q3 14 offering $114* million worth of securities to qualified and accredited investors as well as QIBs. The companies disclosed having raised at the time of filing $35.4 million or roughly 1/3rd of their placement. XDATA broadly classified companies in categories, namely producers and associated activity focusing on the trade (distributors, exchanges etc…). Producers raised on average $2 million per deal which is slightly higher than companies in associated activities. It certainly seems professional smart money is putting some skin in the game based on the categories’ leaders.

On the producer side, Mettrum, a Health Canada licensed producer of medicinal cannabis, lead the pack placing $4.2 million with US investors. The company initiated a reverse take-over in June to list on TSX Venture and completed the transaction two days ago. The company raised gross proceeds of $34.5 million from the private placement which was completed by a syndicate of agents led by Cormark Securities and including GMP Securities, Paradigm Capital and Jacob Securities.

In the other category, Privateer Holdings placed $18.7 million. Privateer is a private equity firm making strategic investments in the cannabis industry to acquire and create mainstream brands, professionalizing the cannabis business landscape. The company is backed by  Ivy League MBAs, marketing professionals, and federal law enforcement professionals. The company is currently invested in Tilray (a premium brand of medical cannabis) and Leafly (an online information resource for cannabis consumers).

 

Name Deals Offering Raised
 Privateer Holdings             1        75,000,000        18,665,595
 Growlife             8          2,205,440          2,205,440
 OXIS International             1          1,425,000          1,425,000
 Royale Leisure Industries             1          1,000,000            500,000
 Greenbroz             1            500,000            150,000
 Phoenix Pharms Capital             1          2,500,000            126,000
 Prohibition Brands             1            250,000              67,000
 Colorado Cannabis Exchange             1            100,000              10,000
 …               15          82,980,440          23,149,035
Mettrum 1        10,229,472          4,262,280
Cresco Labs 1          4,000,000          4,000,000
CannMedica Pharma 1          2,786,700          2,786,700
Green Star Growing 1          5,000,000            950,000
Waveseer of Las Vegas 1          8,730,000            200,000
Pure Natures Wellness 1              40,549              40,549
6          30,786,721          12,239,529
DisposaBowls             1              22,500              22,500
Infinity Minerals             1              28,539              16,308
                2                  51,039                  38,808

*offered by US based companies or to US based investors. If the company is located outside the US only the portion of the placement allocated to US investors is taken into account.

For more information visit www.XDATA.co

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