FP/wire say Canopy, rivals see pot financing rebounding
Canopy Growth Corp (C:WEED)
Shares Issued 349,362,249
Last Close 2/19/2020 $28.78
Wednesday February 19 2020 - In the News
The Financial Post reports in its Wednesday, Feb. 19, edition that cannabis stocks are wallowing near record lows, but the amount of capital raised in the space is bouncing back. A Bloomberg dispatch to the Post reports that from the beginning of the year through Feb. 7, pot companies have raised $1.2-billion (U.S.) of capital compared with $886-million (U.S.) in the same period of 2019, data from Viridian Capital Advisors shows. The growing availability of debt-based financing seems to be driving the increase. Year-to-date, about 30 per cent of the capital raises have been debt compared with 19 per cent a year ago. "This is a trend with sustainability as debt financing provides a lower cost of capital for operators relative to the dilutive effect of raising equity with weak share prices," Viridian said. Notably, the number of raises is still tracking below last year's number, at 36 versus 52.
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