Canopy Growth Announces Private Placement of up to US$50 Million
SMITHS FALLS, ON, Sept. 18, 2023 /PRNewswire/ – Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (Nasdaq: CGC), today announced that it has entered into subscription agreements (the “Subscription Agreements”), dated September 18, 2023, with certain institutional investors (the “Investors”) in a private placement offering (the “Offering”) of 22,929,468 units (“Units”) at a price per Unit of US$1.09 for aggregate gross proceeds of approximately US$25,000,000. The Investors also hold an over-allotment option to acquire up to an additional 22,929,468 Units at a price per Unit of US$1.09 for aggregate gross proceeds of US$25,000,000 at the discretion of the Investors at any time on or before November 2, 2023 (the “Over-Allotment Option”).
The purpose of the offering is to provide the Company with additional liquidity of up to US$50MM to further strengthen Canopy Growth’s financial position and is expected to be used for working capital and other general corporate purposes.
Each Unit will be comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share from the Company at a price equal to US$1.35 for a period of five years from the date of issuance. The Company has also agreed to provide the Investors with customary registration rights.
The closing of the private placement pursuant to the Subscription Agreements (not including the Over-Allotment Option) is expected to occur on or about September 19, 2023, subject to customary closing conditions.
This news release is issued pursuant to Rule 135c under the Securities Act of 1933 and shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. Any offering of the securities under the resale registration statement will only be by means of a prospectus.
About Canopy Growth
Canopy Growth is a leading North American cannabis and consumer packaged goods (“CPG”) company dedicated to unleashing the power of cannabis to improve lives. Through an unwavering commitment to our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep Space. Canopy Growth’s CPG portfolio features targeted 24-hour skincare and wellness solutions from This Works, gourmet wellness products by Martha Stewart CBD, and category defining vaporizer technology made in Germany by Storz & Bickel.
Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through its rights to Acreage Holdings, Inc., a vertically integrated multi-state cannabis operator with principal operations in densely populated states across the Northeast, as well as Wana Brands, a leading cannabis edible brand in North America, and Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology.
Beyond our world-class products, Canopy Growth is leading the industry forward through a commitment to social equity, responsible use, and community reinvestment—pioneering a future where cannabis is understood and welcomed for its potential to help achieve greater wellbeing and life enhancement.
For more information visit www.canopygrowth.com