News

Cannabis Firm Canopy Raising $95 Million In Convertible Debt Offering

$50m additionally could be purchased in a second tranche if certain conditions are satisfied

Canadian cannabis producer Canopy Growth Corp. entered into an agreement with an institutional investor for a convertible debt issuance worth up to $150 million (203 million Canadian dollars) in two tranches.

Per the terms of the deal, the investor is purchasing $100 million of the convertible debentures in an initial tranche, the Smiths Falls, Ontario-based company said in a Tuesday news release.

An additional $50 million could be purchased in a second tranche if certain conditions are satisfied.

The convertible debentures, which mature Feb. 28, 2028, will bear interest at a rate of 5% per year from the date of issuance, payable in common shares

Up to 98,929,320 common shares underlie the convertible debentures.

Canopy said it intends to use net proceeds from the initial tranche for working capital and general corporate purposes.

Estimated net proceeds will be roughly $95 million and $48 million for the first and second tranches, respectively.

To Read The Rest Of This Article On MJ Biz Daily, Click Here

Stay up-to-date!

Get all the news and info straight into your inbox that you need to help grow your business.

Marijuana Retail Report, is a national daily online trade publication serving retailers of marijuana products and accessories. News and information are geared strictly to select retail channels, with distribution limited to licensed collectives, recreational retailers, accessories retailers, and wholesalers.

Newsletter

Stay informed with the most up-to-date industry news to help you grow your business: subscribe to our newsletter below!


To Top