Canopy Growth Secures US$35 Million in Private Placement to Bolster Liquidity and Reduce Debt

LOS ANGELES – Canopy Growth Corporation, a player in the cannabis industry, has announced an upsized private placement deal that aims to fortify the company’s financial standing. The agreement, confirmed on January 18, 2024, involves the sale of 8,158,510 units to institutional investors, each priced at US$4.29, culminating in aggregate gross proceeds of approximately US$35 million.

This strategic move is aimed at enhancing Canopy Growth’s liquidity, thereby strengthening its financial health. The proceeds from this offering are slated for debt reduction, aligning with the company’s ongoing strategy to lessen its financial obligations. Additionally, funds will be allocated for working capital and other general corporate needs.

The terms of the placement detail that each unit comprises one common share of Canopy Growth and either one Series A or Series B Common Share purchase warrant. These warrants grant the investor the right to purchase additional common shares at US$4.83 each. Series A Warrants are exercisable immediately post-offering for five years, while Series B Warrants can be exercised six months after the closing, extending up to five years.

The closure of this private placement, in accordance with the Subscription Agreements, is anticipated on or around January 19, 2024. This is contingent upon receiving approval from the Toronto Stock Exchange and satisfying customary closing conditions.

This announcement, made in compliance with Rule 135c under the Securities Act of 1933, does not represent an offer to sell or a solicitation of an offer to buy the securities. Furthermore, these securities will not be sold in any jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction. The sale of securities under the resale registration statement will be conducted solely through a prospectus.