The private placement is expected to close Wednesday.
Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) entered into a private placement offering to raise $30 million, the company announced Tuesday.
Under the terms of the offering, Canopy Growth will issue 6,993,007 units at a price of US$4.29 per unit. Each unit includes one common share of the company and a warrant. The warrants are divided into two series, A and B, with each warrant allowing the purchase of an additional common share at a price of US$4.83.
The company stated that the proceeds are intended to increase its liquidity and be used for debt reduction, working capital, and other general corporate purposes.
The Series A warrants are exercisable immediately after the offering closes and are valid for five years, while the Series B warrants can be exercised starting six months after the offering closes, also with a five-year validity.
The private placement is expected to close Wednesday, subject to standard closing conditions.
The move is part of Canopy Growth’s broader strategy to manage its debt and financial position. The company recently consolidated its shares to regain compliance with the Nasdaq, to the chagrin of its investors.
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