Canopy Growth Archives

Debra BorchardtJune 2, 2023

Acreage Holdings, Inc. (OTCQX: ACRHF, ACRDF) announced that Peter Caldini has elected to resign from his position as Chief Executive Officer, effective June 30, 2023. Chief Operating Officer Dennis Curran has been appointed Chief Executive Officer and will assume the role on July 1, 2023.

The move comes during an overhaul of the company’s C-suite. Just a few weeks ago Acreage announced that Chief Financial Officer Steve Goertz had resigned effective June 15, 2023. At the time, the company said it had begin a search process to fill the role. All of these changes comes as Acreage works toward completing its previously announced arrangement involving Canopy Growth Corporation (NASDAQ: CGC) and Canopy USA, LLC. Goertz will complete the preparation and filing of the company’s financial statements for the first quarter of 2023 and assist in the transition.

Caldini was named CEO in December 2020 following the departure of Acreage Founder Kevin Murphy. Murphy had led the company in its unusual and generously termed deal with Canopy to buy Acreage once cannabis was declared federally legal in the U.S. Since that deal was agreed upon, valuations for American cannabis companies have tumbled and legalization at the Federal level still hasn’t happened. In addition, Acreage found itself struggling with declining sales and massive losses under Murphy’s leadership. Acreage was also taking on short term loans with excessive interest rates in order to keep the company operating. The avalanche of problems saw the departure of Murphy as CEO.

Caldini managed to get the company on better footing as it abandoned its original strategy to be the largest cannabis company in the most states and cut spending. Caldini said, “I am incredibly proud of the team and the foundation we built together at Acreage. Since I joined, we have undergone numerous changes and put in significant work to establish a robust platform for sustained growth alongside the evolution of the industry. I want to sincerely thank the entire Company, as well as the Board, for their support over the years and I look forward to watching Acreage continue its momentum as a key component of Canopy USA.”

Curran joined Acreage in March 2022, bringing over 35 years of leadership expertise in sales, distribution, and marketing, having previously held executive-level positions with GSK Consumer Health and Procter & Gamble (P&G). Curran said, “I am honored and thrilled to be guiding the incredible Acreage team on our journey to be a critical part of Canopy USA. It could not be a more exciting time to be taking on a new position with the Company. Finally, I want to thank Peter for all he has done to set us up to succeed.”

Kevin P. Murphy, Chairman and Founder of Acreage, said, “During his tenure, Peter surpassed our objectives and led Acreage through many formative events, including its recent dramatic transformation. He brought the strategic guidance required to expand our footprint at the onset of adult-use sales in multiple core states while delivering on our plan to significantly improve our profitability. Peter restored Acreage’s position at the forefront of the industry and equipped the business to accelerate our growth trajectory as a part of Canopy USA.”

Debra BorchardtMay 22, 2023

The new provisions also limit Canopy's role on Canopy USA's board.

StaffMay 1, 2023

The company received shareholder approval for its arrangement with Canopy USA in March.

Debra BorchardtApril 14, 2023

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced that it has entered into an exchange agreement with Greenstar Canada Investment Limited Partnership, a wholly-owned subsidiary of Constellation Brands, Inc., in order to extinguish C$100 million (approximately USD$73.9 million) aggregate principal amount of the company’s outstanding 4.25% unsecured notes due 2023. The goal of the transaction is to preserve cash on hand and cut the company’s annual expenses.

Greenstar is buying and then canceling the C$100 million aggregate principal amount of the Existing Notes held by GCILP in exchange for:

A cash payment to GCILP in the amount of unpaid and accrued interest owing under the Existing Notes held by GCILP; and
A promissory note issuable to GCILP in the aggregate principal amount of C$100 million payable on December 31, 2024. The Promissory Note will bear interest at a rate of 4.25% per year, payable on maturity of the Promissory Note.

Canopy Growth will move forward with its plan to create a new class of non-voting and non-participating exchangeable shares, which will be convertible into the company’s common shares. Following the closing of the CBI Transaction and the creation of the Exchangeable Shares, the company maintains its intention to negotiate an exchange with GCILP to purchase for cancellation up to C$100 million aggregate principal amount of the Promissory Note in exchange for Exchangeable Shares, subject to the rules and policies of the Nasdaq and the Toronto Stock Exchange.

Canopy recently announced that it had entered into an agreement with an institutional investor for the purchase and sale of up to $150 million aggregate principal amount of senior unsecured convertible debentures. The Institutional Investor purchased an initial $100 million of the Convertible Debentures and an additional $50 million of the Convertible Debentures will be purchased in the event that certain conditions outlined in the Indenture are satisfied or waived.

“Canopy Growth is executing a strategy focused on accelerating growth and profitability by transforming our Canadian operations and fast-tracking entry into the U.S. market,” said Judy Hong, Chief Financial Officer of Canopy Growth. “Building on other recent actions taken to enhance cash flow, this attractive capital immediately adds to Canopy Growth’s cash on hand and provides additional flexibility to continue advancing strategic priorities”.