Canopy Growth Corporation has struck a deal with a single investor to receive around US$50 million and exchange about C$27.5 million of existing debt for a new convertible debenture. This debenture will mature in five years. The investor will get a debenture worth C$96,358,375 and over 3 million warrants to buy common shares at a fixed price for five years. The debenture will earn interest and can be converted into common shares at a set price. If the company's shares perform well, it can force conversion of the debenture. The company won't list these securities on any exchange and will use the money for regular business needs. The deal is set to close around May 6, 2024, and the company will register the shares with the SEC within 45 days.
For more information:
Canopy Growth
www.canopygrowth.com