CAPITAL RAISES
Transactional Activity: Week 36 ended September 4, 2020, saw a 99% lower dollar volume with 4 fewer transactions vs. the prior week of this year and a sharply lower dollar volume and number of transactions vs the prior-year period. We recorded 2 capital raise transactions totaling $.9 million, vs 7 transactions totaling $35.5 million during the same week in 2019. The average tranche size was $0,5 million this week, vs. $5.1 million in the prior-year period.
Largest Cap Raise: On August 31, RMMI Corp, an Albertan cultivator, producer, processor, and seller of cannabis, raised US$0.58 million in a non-brokered private placement of 3.4 million common shares at a price of U.S.$0.17 per share. The use of the proceeds of the offering is to complete the build of the company’s extraction and processing facility and for general corporate purposes. RMMI closed at US$0.20 per share before the holiday weekend and that price represents a market to book ratio of .77x, which is in line with the .67x median multiple for the 38 Canadian Cultivation & Retail companies with enterprise value under $25 million that we track in the Viridian Value Tracker. The company is pre-revenue and negative EBITDA, so the most commonly used valuation metrics are not directly applicable.
August 31st - September 4th, 2020