/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
SMITHS FALLS, ON, Aug. 24, 2016 /CNW/ - Canopy Growth Corporation (TSX: CGC) ("Canopy Growth" or the "Company") announced that it has closed its previously announced short form prospectus offering, on a bought deal basis, including the exercise in full of the underwriters' over-allotment option. A total of 9,453,000 common shares in the capital of the Company (the "Shares") were sold at a price of $3.65 per Share, for aggregate gross proceeds of $34,503,450 (the "Offering"). The Offering was underwritten by a syndicate of underwriters led by GMP Securities L.P. and Dundee Securities Ltd.
The Company intends to use the net proceeds from the Offering primarily to expand its cannabis oil extraction capacity, including the addition of encapsulation equipment, add multilayer flowering, grow and drying rooms, complete building improvements at all locations and develop international business opportunities. The international development expenditures are primarily related to the further exploration and development of the market opportunity in Germany. The balance of the net proceeds will be used for general working capital purposes, such as potential acquisitions and integration, developing new product offerings, and supporting marketing efforts to penetrate the Quebec market. The Company may reallocate these funds as market and regulatory indicators warrant in light of the anticipated legalization of a national recreational cannabis market and the ACMPR. The Company has begun the initial build out and conversion of space at its Smiths Falls facility during the first quarter of the 2017 fiscal year, which principally relates to building breeding rooms, developing a dealer license area and building improvements. While the Company currently anticipates that it will use the net proceeds of the Offering received by it as set forth above, the Company may re-allocate the net proceeds of the Offering from time to time, having consideration to its strategy relative to the market and other conditions in effect at the applicable time.
The Shares were offered by way of a short form prospectus dated August 18, 2016 in (i) each of the provinces of Canada, except Quebec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions; (ii) the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended; and (iii) in jurisdictions outside of Canada and the United States, as agreed to between the Company and GMP, in each case in accordance with all applicable laws provided that no prospectus, registration statement or similar document was required to be filed in such jurisdiction and the Company will not be subject to any continuous disclosure requirements in such jurisdiction. The Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities inthe United States, nor shall there be any sale of the Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.