Canopy Growth Corporation (NASDAQ:CGC) shares are climbing higher after the company announced it has completed all conversions pursuant to the $100 million convertible debentures and provided an update to its balance sheet actions taken to date.
The Details:
The announcement included the following balance sheet updates from Canopy:
- Equitization of $263 million of the 4.25% Unsecured Notes due in July 2023;
- Paydown of USD$188 million (or 25% of the principal) of the senior secured term loan at $0.93 per dollar of debt;
- Refinanced $100 million of the 4.25% Unsecured Notes due in July 2023 held by Greenstar Canada Investment Limited Partnership, a wholly-owned subsidiary of Constellation Brands, Inc. (“CBI”) in order to extend the maturity date to December 31, 2024; and
- Generated $81 million in cash proceeds during the most recent fiscal quarter from the disposition of five facilities with additional agreements in place to generate up to $150 million in total proceeds by September 30 of this year.
“Today’s announcement underscores our continued commitment to deleveraging and strengthening Canopy Growth’s financial position,” said Judy Hong, CFO, Canopy Growth.
“When paired with our ongoing cost reduction program in Canada which is on track to achieve $240-$310M in total savings by March 2024, we are well positioned to achieve improved profitability, enhance financial flexibility, and support long-term value creation.”
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CGC Price Action: According to Benzinga Pro, Canopy Growth shares are trading over 40% at 54 cents at the time of publication.
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