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.
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