Canopy Growth Raises $30M in Private Placement Offering

The private placement is expected to close Wednesday.

Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) entered into a private placement offering to raise $30 million, the company announced Tuesday.

Under the terms of the offering, Canopy Growth will issue 6,993,007 units at a price of US$4.29 per unit. Each unit includes one common share of the company and a warrant. The warrants are divided into two series, A and B, with each warrant allowing the purchase of an additional common share at a price of US$4.83.

The company stated that the proceeds are intended to increase its liquidity and be used for debt reduction, working capital, and other general corporate purposes.

The Series A warrants are exercisable immediately after the offering closes and are valid for five years, while the Series B warrants can be exercised starting six months after the offering closes, also with a five-year validity.

The private placement is expected to close Wednesday, subject to standard closing conditions.

The move is part of Canopy Growth’s broader strategy to manage its debt and financial position. The company recently consolidated its shares to regain compliance with the Nasdaq, to the chagrin of its investors.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.


One comment

  • michael g mclaughlin

    January 9, 2024 at 7:29 pm

    More debt is never good. They cannot keep borrowing money.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.