- Canopy Growth has signed subscription agreements with numerous institutions for a combined US$30 million investment
- The funds, priced at US$4.29 per unit, will go towards general corporate purposes, paying down debt and strengthening the company’s working capital position
- Canopy Growth is a North American cannabis and consumer packaged goods company with a brand portfolio including Doja, 7ACRES, Tweed, Deep Space, Martha Stewart CBD and Storz & Bickel
- Canopy Growth stock opened with a loss of 9.05 per cent, trading at C$6.13 per share as of 9:40 am ET
Canopy Growth (TSX:WEED; NDAQ:CGC) has signed subscription agreements with numerous institutions for a combined US$30 million investment.
The company will sell 6,993,007 units priced at US$4.29 under a private placement and allocate the funds to general corporate purposes, paying down debt and bolstering its working capital position.
Each unit is composed of one Canopy Growth common share and one common share purchase warrant (either Series A or B). Each warrant allows the holder to purchase one common share for US$4.83. Series A warrants are immediately exercisable for five years after the closing of the offering, while Series B warrants are exercisable for five years only six months after the closing of the offering.
The company expects the private placement to close on Wednesday.
Investors interested in further due diligence should consult our extensive coverage of the cannabis stock, including:
Canopy Growth is a North American cannabis and consumer packaged goods company. Its brands include Doja, 7ACRES, Tweed, Deep Space, Martha Stewart CBD and Storz & Bickel.
The company has positioned itself to capitalize on U.S. cannabis legalization through its rights to Acreage Holdings, a vertically integrated multi-state cannabis operator, Wana Brands, a cannabis edibles brand, and Jetty Extracts, a producer of cannabis extracts and a pioneer of clean vape technology.
Canopy Growth stock (TSX:WEED) opened with a loss of 9.05 per cent, trading at C$6.13 per share as of 9:40 am ET. The stock has fallen by more than 80 per cent year-over-year and by more than 95 per cent since 2019.
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