Canopy Growth Coporation (WEED), a diversified cannabis and hemp company based in Smith Falls, Ontario, today announced that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. (GMP) and BMO Capital Markets (BMLP) as joint bookrunners. The underwriters have agreed to purchase, on a bought deal basis, 5,060,000 common shares of the company, at a price of $34.60 per common share, for an estimated value of approximately $175,076,000.
The company has also agreed to grant the underwriters an over-allotment option to purchase up to an additional 759,000 common shares at the Offering Price. The option is exercisable in part or wholly at any time on the date of or prior to the 30 days following the closing of the offering. The offering is expected to close on Feb. 7, 2018.
This latest deal comes on the heels of a two year agreement between Canopy and the Canadian provincial government of Prince Edward Island, in which the company will provide the province with a minimum of one million grams of cannabis for at least the first year. Upon the third year, the deal may be renewed pending approval from both the company and the provincial government. The retail value of the deal has been estimated to be worth approximately $8 million – $12 million annually.
Cannabis Wheaton Income Corp. Closes Private Placement
Also posting big numbers today is Cannabis Wheaton Income Corp. (CBW), the self-proclaimed world’s first cannabis streaming company, which announced the closing of a previously announced $100 million private placement.
The funds were raised through the issuance of 100,000 Convertible Debenture Units at a price of $1,000 per Convertible Debenture Unit. The net proceeds from the deal will go towards funding working capital, administrative costs, financing of the company’s streaming partners, and other general corporate expenses.
MMCAP International Inc. SPC and Wheaton Income have agreed to a binding term sheet in regards to the offering where MMCAP will agree to subscribe up to $48 million aggregate principal amount of convertible debenture units.
A more detailed description of the terms in the offering can be found here.