Canopy Growth closes $24.25-million private placement 2017-03-22 10:29 ET - News Release
Mr. Tyler Burns reports
CANOPY GROWTH COMPLETES $24.25 MILLION PRIVATE PLACEMENT FINANCING
Canopy Growth Corp. has completed a private placement with one investor of common shares. Pursuant to the offering, the company issued 2.5 million shares at a net price of $9.70 per share for aggregate net proceeds of $24.25-million.
"With the recent addition of Canopy Growth to the S&P/TSX Composite Index, imminent Canadian adult access markets, and the awakening of legal cannabis markets in Germany, Australia, Brazil, Israel and elsewhere around the globe, we are entering a very opportunistic period for our business," said Bruce Linton, chairman and chief executive officer of Canopy Growth. "This equity financing gives us more resources so we can accelerate into this expected window of opportunity."
The company intends to use the proceeds of the offering for capacity growth initiatives as well as general corporate and working capital purposes. No finders' fees were paid by the company as part of the offering.
Goldman Holdings Ltd., a company controlled by Canopy Growth board member Murray Goldman, also agreed to enter into a securities lending agreement with the investor to provide free-trading shares in exchange for shares acquired in this offering, which are restricted from trading for a period of four months from the issue date.