By By Adriano Marchese
Smiths Falls, Ontario-based cannabis company, Canopy Growth, announced its plans on Thursday to raise $35 million through a private placement in order to enhance its balance sheet.
Subscription Agreements with Institutional Investors
Canopy Growth has entered into subscription agreements with specific institutional investors, offering approximately 8.2 million units at a price of $4.29 per unit.
Share Performance and Overview
Shares of Canopy Growth have faced significant downward pressure in 2024, declining by 8.4% thus far. As of Wednesday, the closing price stood at $4.68. Over the past year, the stock has experienced a considerable decrease of nearly 83%.
Composition of Units and Warrants
Each unit will consist of one common share along with a warrant for either a series A or series B common share. The exercise price for each warrant is set at $4.83. The series A warrant can be exercised within the next five years immediately after the offering is closed, while the series B warrant can only be exercised after a six-month period following the closing date over a five-year period.
Allocation of Funds
Canopy Growth intends to utilize the funds raised to strengthen its financial position through debt repayment and as working capital for general corporate purposes.
Comments