Canopy Growth Corporation has announced that it has entered into subscription agreements with certain institutional investors for a private placement offering of approximately $25 million. The purpose of the offering is to provide the company with additional liquidity and strengthen its financial position for working capital and other corporate purposes.
The private placement offering consists of 22,929,468 units, priced at $1.09 per unit. Each unit includes one common share of the company and one common share purchase warrant. The warrant entitles the holder to acquire one common share at a price of $1.35 for a period of five years from the date of issuance. The investors also have the option to acquire an additional 22,929,468 units for the same price.
The closing of the private placement offering is expected to occur on or about September 19, 2023, subject to customary closing conditions. The investors will also be provided with customary registration rights.
Canopy Growth is a leading North American cannabis and consumer packaged goods company. It focuses on premium and mainstream cannabis brands, as well as consumer wellness solutions. The company also has rights to Acreage Holdings, a multi-state cannabis operator in the U.S., and partnerships with other cannabis brands.
This private placement offering will provide Canopy Growth with additional liquidity and financial strength to support its operations and future growth. It demonstrates the confidence of institutional investors in the company’s potential and solidifies its position in the cannabis industry.
Sources: Canopy Growth Corporation