Canopy Growth Corporation (NASDAQ:CGC) (TSX:WEED) has entered into privately negotiated exchange agreements with certain holders of the company’s outstanding 4.25% unsecured senior notes due 2023, to acquire CA$12.5 million ($9.4 million) aggregate principal amount of the notes from the noteholders in exchange for common shares of the company and cash.
“We are pleased to have reached an agreement to equitize these notes and remain focused on further strengthening Canopy’s financial position. This announcement builds on other already completed actions to preserve cash and provide additional financial flexibility,” stated Judy Hong, CFO, Canopy Growth.
Transaction Details
In accordance with the terms of the exchange agreements, Canopy Growth has agreed to acquire and cancel CA$12.5 million aggregate principal amount of the notes from the noteholders in exchange for cash, including accrued and unpaid interest owing under the notes, and the issuance of approximately 24.3 million Canopy shares.
The transaction is being conducted as a private placement, and any Canopy shares to be issued in the transaction will be issued pursuant to the exemption from the registration requirements of the Securities Act of 1933, as amended, afforded by Section 4(a)(2) of the Securities Act in transactions not involving any public offering. HudsonWest LLC acted as financial advisor to the company in connection with the transaction.
Photo by Richard T on Unsplash
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