SMITHS FALLS, ON - Canopy Growth (NASDAQ:CGC) Corporation (TSX: WEED) (Nasdaq: CGC), a prominent North American cannabis and consumer packaged goods company, announced today it has finalized subscription agreements in a private placement with institutional investors, securing approximately $35M in gross proceeds. The transaction involved the sale of 8,158,510 units at $4.29 each. This capital infusion is aimed at enhancing the company's liquidity and bolstering its financial stance.
The funds raised are earmarked for debt repayment, aligning with Canopy Growth's strategy to reduce its overall debt burden. Additional uses for the capital include bolstering working capital and funding general corporate purposes. Each unit sold consists of one common share and one warrant, which could be either a Series A or Series B warrant. These warrants grant the right to purchase additional common shares at a set price of $4.83.
The Series A Warrants are exercisable immediately upon the closing of the offering and are valid for a five-year period. The Series B Warrants will become exercisable six months post-closing, also with a five-year term. Investors are also afforded customary registration rights as part of the deal.
The private placement is expected to close around January 19, 2024, subject to the approval of the Toronto Stock Exchange and standard closing conditions. The release clarified that this announcement does not constitute an offer to sell the securities nor a solicitation for purchase, emphasizing compliance with securities law regulations.
Canopy Growth is recognized for its diverse portfolio, including premium cannabis brands such as Doja, 7ACRES, Tweed, and Deep Space, as well as wellness products under the Martha Stewart CBD brand and vaporizer technology from Storz & Bickel. The company has also established a significant presence in the U.S. THC market through its rights to Acreage Holdings (OTC:ACRGF), Wana Brands, and Jetty Extracts.
The information provided is based on a press release statement from Canopy Growth Corporation. The company cautions that forward-looking statements in the release involve risks and uncertainties, and there can be no assurance that anticipated results will be achieved within the stated time frames or at all.
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