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Chart Of The Week: Cannabis Debt Volumes Are Increasing And Costs Are Declining

Benzinga ·  Aug 26 10:50
Debt issuance for the U.S. Cultivation & Retail sector in H2:24 is already ahead of any period since H2:22. With the additional financing expected for the remainder of the year, issuance should top all periods except the second half of 2021 and the first half of 2022.

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  • The large majority of H2:24 debt issuance has been refinancing activity, including Ascend (OTC:AAWH), Jushi (OTC:JUSHF), and Terrascend

    (OTC:TSNDF). Each of these was priced at attractive rates despite all of them having tax-adjusted net debt well above 3x Debt/EBITDA. Debt investors are willing to believe 280e relief is on the way.

  • The dark green bars...

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