Canopy Growth raises $35M in upsized private placement; proceeds to pay down debt

Canopy Growth Corp

Sold 8.16M units at $4.29/unit for gross proceeds ~$35M; net proceeds ~$32.5M after fees.
Each unit includes 1 common share plus 1 warrant (Series A or B) to buy another share at $4.83; Series A warrants exercisable immediately, Series B after 6 months, both 5-year term.
Proceeds to be used to pay down debt as well as for working capital and other general corporate purposes.
Placement agents A.G.P./Alliance Global Partners and ATB Capital Markets USA Inc.; cash fee of 4.5% of gross proceeds.
Company entered into a registration rights agreement to register resale of the shares and warrant shares.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Canopy Growth Corp entered into Subscription Agreements with certain institutional investors valued at US$35,000,000 (effective 2024-01-18).

Action: entry
Agreement: equity purchase
Counterparty: certain institutional investors
Value: US$35,000,000
Effective: 2024-01-18

Exact text from the filing

On January 18, 2024, Canopy Growth Corporation (the “Company”), entered into Subscription Agreements (collectively, the “Subscription Agreements”) with certain institutional investors (collectively, the “Investors”) pursuant to which the Company agreed sell to the Investors an aggregate of 8,158,510 units (each a “Unit” and, collectively, the “Units”) of the Company at a price of $4.29 per Unit in a private placement (the “Private Placement”) for aggregate gross proceeds of approximately US$35,000,000.

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82 material agreements filed in the last 30 days. Browse all material agreements →

Canopy Growth Corp filing history →

Source: SEC EDGAR

accession 0001104659-24-005221

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