so, this is a story about how people are lending money to other people who have businesses growing special plants called cannabis. The people who lend money want to get their money back plus extra as a reward. This story shows that a lot of money is being lent for these special plants businesses, and the people who lend money are being smart about it. They check how good a business is at using the money they borrowed before lending them more. This way, they make sure they get their money back plus extra from the business that is doing well. Read from source...

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DAN:

The cannabis debt market is on fire, with a whopping $632M in proceeds raised during Q3 2024, marking the largest quarter since Q4 2021. This finding, based on the Viridian Capital Cannabis Deal Tracker, highlights that the market is accurately factoring in the credit risk of cannabis companies when pricing new deals. While most deals represent refinancings of existing debt, some significant growth capital deals for private firms also closed. One of the most significant outliers was TerrAscend's 12.75% cost, which was expected to have a higher yield. Nevertheless, with the cannabis equity markets range-bound and somewhat skeptical, awaiting further developments on SAFE and S3, the debt market remains the principal capital source for the cultivation and retail sectors, even for challenging underwritings like Acreage and Jushi.

### MARKET NEWS:
The chart of the week from Viridian Capital Advisors, Benzinga contributor, reveals that the cannabis debt market is sizzling. With approximately $632 million in proceeds raised during Q3 2024, the quarter is on track to be the largest since Q4 2021. The chart indicates that the market accurately prices in the credit risk of issuers for new issues, with a regression line R-squared of 0.91. Of the deals displayed on the chart, most were refinancing of existing debt, including for TerrAscend (TSND), AYR AYRWF, PharmaCann (private), Cannabist (CBSTF), Sunburn and Nova. While credit ratings vary widely, investor demand appears to exist for companies across the credit quality spectrum.

neutral

This article highlights the current state of the cannabis credit markets. The author notes that the debt market has been the principal capital source for the cultivation and retail sector for both high-quality credits and more challenging underwritings. The article uses a chart to illustrate the effective cost of transactions and credits' rankings. The author also notes that investor demand exists for companies across the credit quality spectrum, citing the recent refinancing of Acreage Holdings as an example. The tone of the article is neutral, with no bearish or bullish sentiment expressed.