RE:Dilution - Canopy has a real spending problem!Canopy is paying $30 million for less than 1% increase in ownership of RIV????????!
Concurrent with the Bought Deal, Canopy Growth Corporation (“Canopy Growth”), the Company’s largest shareholder, will purchase a minimum of 6,250,000 Subordinated Voting Shares on a private placement basis, at a price per Subordinated Voting Share equal to the Issue Price (the “Private Placement” and together with the Bought Deal, the “Offering”) for additional gross proceeds of a minimum of approximately $30.0 million. Canopy Growth currently owns approximately 26.5% of the issued and outstanding shares of the Company on a non-diluted basis and has elected to subscribe under the Private Placement for more than its pro rata participation right. Following completion of the Offering (prior to giving effect to the Over-Allotment Option (as defined below)), Canopy Growth’s ownership interest in the Company will increase to approximately 27.3% of the issued and outstanding shares of the Company on a non-diluted basis. The combined gross proceeds to the Company under the Offering will be a minimum of approximately $85 million.