Chart Of The Week: Cannabis Debt Volumes Are Increasing And Costs Are Declining
Portfolio Pulse from Viridian Capital Advisors
The U.S. Cultivation & Retail cannabis sector is experiencing increased debt issuance in H2:24, primarily for refinancing activities. Companies like Ascend, Jushi, and Terrascend have secured attractive rates despite high debt levels. The effective cost of debt has decreased significantly, and further tightening of spreads is anticipated.
August 26, 2024 | 2:50 pm
News sentiment analysis
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Ascending
POSITIVE IMPACT
Ascend has engaged in refinancing activities at a 14.24% effective cost, benefiting from lower debt costs despite high leverage.
Ascend's refinancing at a lower effective cost indicates improved financial conditions, likely boosting investor confidence and short-term stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Curaleaf is expected to engage in refinancing activities, potentially benefiting from the current trend of lower debt costs.
Curaleaf's anticipated refinancing could benefit from the trend of decreasing debt costs, likely leading to positive short-term stock movement.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Green Thumb is expected to engage in refinancing activities, potentially benefiting from the current trend of lower debt costs.
Green Thumb's anticipated refinancing could benefit from the trend of decreasing debt costs, likely leading to positive short-term stock movement.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Jushi has refinanced at a 14.88% effective cost, reflecting improved debt conditions despite high leverage.
Jushi's refinancing at a lower effective cost suggests better financial health, likely leading to positive short-term stock movement.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Terrascend has refinanced at a 12.75% effective cost, benefiting from favorable debt conditions.
Terrascend's refinancing at a lower effective cost indicates improved financial conditions, likely boosting investor confidence and short-term stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80