Canopy Growth Secures US$30 Million in Private Placement to Bolster Liquidity and Reduce Debt

NEW YORK – In a significant move to strengthen its financial position, Canopy Growth Corporation, a leading North American cannabis and consumer packaged goods company, has announced a major private placement offering. On January 9, 2024, the company confirmed its entrance into subscription agreements with various institutional investors for approximately US$30 million.

This strategic financial maneuver involves the issuance of 6,993,007 units at a price of US$4.29 per unit, leading to aggregate gross proceeds of about US$30 million. The company aims to use these proceeds to pay down its existing debt, in line with its strategy for debt reduction. Additionally, the funds are expected to bolster Canopy Growth’s working capital and support other general corporate purposes.

Each unit in this offering comprises one common share of Canopy Growth and either one Series A or Series B Common Share purchase warrant. These warrants grant investors the right to acquire additional common shares at a price of US$4.83. The Series A Warrants are immediately exercisable post-offering closure and remain so for five years, whereas the Series B Warrants become exercisable six months after the offering closes, with a similar five-year duration.

The closing of this private placement, subject to customary conditions, is anticipated to occur around January 10, 2024. This step represents a significant effort by Canopy Growth to enhance its liquidity and maintain a robust financial standing.

It is important to note that this news release does not constitute an offer to sell or a solicitation of an offer to buy these securities. The sale of these securities in jurisdictions where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws is not permitted.