Canopy Growth Corporation Announces $175 Million Bought Deal Financing

Canopy Growth Corporation (TSX:WEED) (“Canopy Growth” or the “Corporation”) announced today that it has entered into an agreement with a syndicate of underwriters co-led by GMP Securities L.P. (“GMP”) and BMO Capital Markets as joint bookrunners (“BMO” and together with GMP, the “Co-Lead Underwriters” and collectively with the syndicate, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, 5,060,000 common shares (the “Common Shares”) of the Corporation at a price of $34.60 per Common Share (the “Offering Price”) for aggregate gross proceeds to Canopy Growth of $175,076,000 (the “Offering”).

The Corporation has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 759,000 Common Shares at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering.

The Common Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada (except Quebec). The Company intends to use the net proceeds from the Offering for capital expenditures for capacity expansion, working capital, and general corporate requirements. The Offering is expected to close on February 7, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Here’s to Future Growth.

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