Canopy Growth - CEO, David Klein (centre), to the right of CFO, Judy Hong.
CEO, David Klein (centre), to the right of CFO, Judy Hong.
Source: Nasdaq and Vanja Savic.
  • Canopy (WEED) has signed a purchase and sale agreement with an institutional investor for up to US$150M in senior unsecured convertible debentures
  • Each debenture has a face value of US$1,000, bears interest at a rate of 5 per cent per annum and matures on February 28, 2028
  • The company intends to use the proceeds for working capital and general corporate purposes
  • Canopy Growth is a leading North American cannabis and consumer packaged goods company
  • Canopy Growth Corporation (WEED) is down 4.45 per cent, trading at $3.22 per share

Canopy (WEED) has signed a purchase and sale agreement for up to US$150M in convertible debentures.

The debentures are senior unsecured, and the purchaser is an institutional investor.

An initial US$100M purchase will be followed by a US$50M investment upon the satisfaction of certain conditions.

Each debenture has a face value of US$1,000, bears interest at a rate of 5 per cent per annum and matures on February 28, 2028.

The institutional investor may convert the debentures prior to maturity at 92.5-per-cent of the three-day volume-weighted average price of the shares ending on the trading day prior to conversion.

Canopy intends to use the proceeds for working capital and general corporate purposes.

It will pay no cash tied to the principal, interest or any other amounts owing on the debentures.

“Canopy Growth is executing a strategy focused on accelerating growth and profitability by transforming our Canadian operations and fast-tracking entry into the U.S. market,” said Judy Hong, Canopy’s CFO. “Building on other recent actions taken to enhance cash flow, this attractive capital immediately adds to Canopy Growth’s cash on hand and provides additional flexibility to continue advancing strategic priorities.”

Canopy Growth is a leading North American cannabis and consumer packaged goods company dedicated to unleashing the power of cannabis to improve lives.

Canopy Growth Corporation (WEED) is down 4.45 per cent, trading at $3.22 per share as of 10:10 am EST.


More From The Market Online

Nevis Brands begins sales of its Major beverage in California

Nevis Brands (CSE:NEVI) has revealed it has officially begun selling its Major cannabis line of beverages in California.

Xebra Brands receives its first approval for legal CBD in Mexico

Xebra Brands (CSE:XBRA) has been granted its first product authorization to import, launch and sell legal CBD products in Mexico.

The Market Online’s Weekly Cannabis Report – Feb. 23, 2024

Canopy Growth (TSX:WEED) is rolling out five new pre-roll products across its 7ACRES and Hiway brands.

Canopy Growth adds momentum with five new products

Canopy Growth (TSX:WEED) is strengthening its start to 2024 with five new pre-roll products across its 7ACRES and Hiway brands.