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Will Low Liquidity And Challenging Markets Lead To More Debt Restructurings?

Benzinga Real-time News ·  Oct 24, 2022 15:56

The cannabis equity capital market is highly challenging: For the first 42 weeks of 2022 only $72.5M of equity issues were closed by the U.S. Cultivation & Retail sector compared to $2.03B for the same period in 2021.

We screened the 61 companies in the Viridian Credit Tracker database with market caps between $10M and $300M for two characteristics that might indicate a need for debt restructuring:

  • Low liquidity as measured by a Viridian Liquidity Score of under 1.2x.

  • High leverage as calculated by a Total Liabilities to Market Cap of over 2x.

  • The resulting ten companies appear on the graph.

The blue bar represents the Viridian Liquidity Score, an...

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