Canopy Growth Raises $50 Million Through Exchange and Subscription Agreement

LOS ANGELES- Canopy Growth, a cannabis producer based in Smiths Falls, Ontario, has raised approximately $50 million (68 million Canadian dollars) in gross proceeds through an exchange and subscription agreement with an institutional investor. The company announced this development on Friday, specifying that the net proceeds will be used for working capital and general corporate purposes.

As part of the agreement, Canopy Growth plans to exchange roughly CA$27.5 million of existing debt, which is set to mature in September 2025, for a new senior unsecured convertible debenture maturing in five years. The unidentified investor will acquire this debenture, which has an aggregate principal amount of CA$96,358,375.

Additionally, Canopy will issue 3,350,430 common share purchase warrants to the investor. Each warrant allows the holder to purchase a common share at an exercise price of CA$16.18 for five years. The convertible debenture carries an annual interest rate of 7.5% and can be converted into common shares at the investor’s option at a price of CA$14.38 per share, reflecting the average Nasdaq closing price of the shares over the five trading days preceding the agreement.

Canopy Growth’s shares are traded under the ticker CGC on the Nasdaq and WEED on the Toronto Stock Exchange.