Cannabis Stocks Grow 236.1% in 2016

Performance Slows in 2017, but Still Outperforms Major Indexes


Washington, June 01, 2017 (GLOBE NEWSWIRE) --

New Frontier Data, the authority in business intelligence for the cannabis industry, in collaboration with capital markets intelligence from Viridian Capital Advisors, a leading financial/strategic advisory and investment banking firm dedicated to the cannabis industry, has released Investing in the Cannabis Industry 2017 Edition: Charting the Next Stage in Cannabis Investing Following the Historic 2016 U.S. Elections. The report looks at the growth in cannabis investing over the past two years, including how the investment community has responded to the 2016 general elections. Cannabis stocks have seen significant growth in recent years, with the Viridian Cannabis Stock Index growing 236.1% in 2016 alone.

“Cannabis stocks significantly outperformed major indexes in 2016, fueled by speculative investment based on anticipated expansion of new legal markets. In the run up to the election, stocks increased by 207.8% and continued to rise, even with an uncertain future under the new administration. While recent comments by the Trump administration did have an initial dampening effect on the market, we have seen continued growth relative to Q4 2016 whereby cannabis stocks are still outperforming other sectors,” said Giadha Aguirre De Carcer, CEO and Founder of New Frontier Data.

“Investment activity in the legal cannabis marketplace continues to accelerate, both in terms of the aggregate amount of capital being raised and in the frequency of individual tranches. According to the data from our Viridian Cannabis Deal Tracker, the flow of investment capital is beginning to focus in on certain key vertical markets in cannabis and the valuations and deal terms are starting to diverge among these verticals.  The combination of New Frontier’s industry data and Viridian’s financial data in this report provides a very deep and comprehensive perspective on the investment opportunity in the legal cannabis industry,” said Scott Greiper, Founder and President of Viridian Capital Advisors.

In 2016, the Viridian Cannabis Stock Index gained 236.1% while outperforming such mainstream indexes as the Russell 2000 (up19.5%), the Dow Jones Industrial Average (up 13.4%), the S&P 500 (up 9.5%), and the Nasdaq composite (up 7.5%). Examining the underlying sectors in the cannabis markets reveals particularly strong growth throughout 2016, both in businesses that touch the plant and in ancillary businesses. Consulting services have also seen strong growth as investors and businesses continually seek advice about how to navigate cannabis regulatory envi­ronments, to establish business operations, to shape regulatory policy, and to influence political support.

The report also examines:

  • Investment growth across cannabis industry sectors
  • Number of deals & total capital raised in the industry
  • Market impact under the Trump administration
  • Emerging trends between equity and debt investments

If you are a reporter and would like a copy of the report, please contact Gretchen Gailey at 202-489-3821 or ggailey@newfrontierdata.com.

About New Frontier Data:
New Frontier Data is an independent, technology-driven analytics company specializing in the cannabis industry. We offer vetted data, business intelligence, and risk management solutions for investors, operators, and policymakers. New Frontier Data’s research and analysis have been cited in more than 50 countries globally to inform industry leaders. Founded in 2014, New Frontier Data is headquartered in Washington, D.C., with an additional office in Denver. For more information or media inquiries, please visit www.newfrontierdata.com or contact Gretchen Gailey at 202-489-3821 or ggailey@newfrontierdata.com.

About Viridian Capital Advisors:

Viridian Capital Advisors (www.viridianca.com) is a financial and strategic advisory firm dedicated to the cannabis market. We provide market intelligence, investment banking, investor relations, and corporate development services to emerging growth companies and qualified investors in the cannabis sector. Our banking practice, through broker-dealer Pickwick Capital Partners, provides capital and M&A to fund the growth of our clients, while our advisory practice helps to position and build their businesses. Our team’s decades of high-level operating and transactional experience on Wall Street, in a variety of emerging sectors, allows Viridian to provide comprehensive strategic and financial solutions that assist cannabis enterprises in realizing their full potential. For more information, contact Harrison Phillips at (212) 485-0284 or hphillips@viridianca.com.

 

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