- Canopy Growth (TSX:WEED), a cannabis stock behind some of the industry’s most iconic brands, including Tweed and Wana, has made an early US$100 million prepayment under its senior secured term loan
- The prepayment triggers the loan to automatically extend to Dec. 18, 2026
- Canopy Growth is the global cannabis company behind the brands Doja, Wana, Jetty Extracts, 7ACRES, Ace Valley, Tweed, Hi Way, Deep Space and Storz & Bickel, among others
- Canopy Growth stock is down by 38.42 per cent year-over-year and by 97.80 per cent since 2019
Canopy Growth (TSX:WEED), a cannabis stock behind some of the industry’s most iconic brands, including Tweed and Wana, has made an early US$100 million prepayment under its senior secured term loan, automatically extending the maturity date to Dec. 18, 2026.
Canopy calculates that the previously announced prepayment, made at a discounted price of US$97.5 million, will result in annualized interest expense savings of about US$14 million, further strengthening its balance sheet on its path to right-sizing the business for sustainable growth.
The company may make an additional US$100 million prepayment at the US$97.5 million discount by March 31, 2025, further extending the loan’s maturity date to Sept. 18, 2027.
Leadership insights
“This early prepayment reflects our ongoing commitment to reducing cash burn and strengthening our capital structure,” Judy Hong, Canopy Growth’s chief financial officer, said in a statement. “Our proactive steps to reduce debt and extend maturity enhance our balance sheet flexibility to invest in growth areas and drive long-term value creation for our shareholders.”
About Canopy Growth
Canopy Growth is the global cannabis company behind the brands Doja, Wana, Jetty Extracts, 7ACRES, Ace Valley, Tweed, Hi Way, Deep Space and Storz & Bickel, among others.
Canopy Growth stock (TSX:WEED) opened unchanged, trading at C$5.85 per share. The stock is down by 38.42 per cent year-over-year and by 97.80 per cent since 2019.
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(Top image of Ace Valley cannabis drinks: Canopy Growth)