Usually a good sign ... Canopy Growth Announces Private Placement of up to US$50 Million
Canopy Growth Corporation ...
has entered into subscription agreements ... dated September 18, 2023, with certain institutional investors
... in a private placement offering (the “Offering”) of 22,929,468 units (“Units”) at a price per Unit of US$1.09
for aggregate gross proceeds of approximately US$25,000,000.
The Investors also hold an over-allotment option to acquire up to an additional 22,929,468 Units at a price per Unit of US$1.09 for aggregate gross proceeds of US$25,000,000 at the discretion of the Investors at any time on or before November 2, 2023 (the “Over-Allotment Option”).
The purpose of the offering is to provide the Company with additional liquidity of up to US$50MM to further strengthen Canopy Growth’s financial position and is expected to be used for working capital and other general corporate purposes.
Each Unit will be comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share from the Company at a price equal to US$1.35 for a period of five years from the date of issuance. The Company has also agreed to provide the Investors with customary registration rights.