Canopy Growth Aims to Raise $50 Million at $1.09 with Warrants
- New Cannabis Ventures Sep 18, 2023
Canopy Growth Corporation has entered into subscription agreements with institutional investors for a private placement offering of 22,929,468 units at a price per unit of US$1.09 for aggregate gross proceeds of approximately US$25 million.
The investors also hold an over-allotment option to acquire an additional 22,929,468 units at the same price per unit for aggregate gross proceeds of US$25 million.
The purpose of the offering is to provide Canopy Growth with additional liquidity of up to US$50 million for working capital and general corporate purposes.
Each unit consists of one common share of the company and one common share purchase warrant, which can be exercised at a price of US$1.35 for a period of five years from the date of issuance.
SMITHS FALLS, ON, Sept. 18, 2023 /PRNewswire/ – Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (Nasdaq: CGC), today announced that it has entered into subscription agreements (the “Subscription Agreements”), dated September 18, 2023, with certain institutional investors (the “Investors”) in a private placement offering (the “Offering”) of 22,929,468 units (“Units”) at a price per Unit of US$1.09 for aggregate gross proceeds of approximately US$25,000,000. The Investors also hold an over-allotment option to acquire up to an additional 22,929,468 Units at a price per Unit of US$1.09 for aggregate gross proceeds of US$25,000,000 at the discretion of the Investors at any time on or before November 2, 2023 (the “Over-Allotment Option”).
The purpose of the offering is to provide the Company with additional liquidity of up to US$50MM to further strengthen Canopy Growth’s financial position and is expected…