Canadian Cannabis Company Canopy Raises $95 Million in Convertible Debt Issue

Canadian cannabis producer Canopy Growth Corp. has reached an agreement with institutional investors to issue $150 million (C$203 million) worth of convertible debt in two tranches. the convertible bonds due Feb. 28, 2028, will bear interest at a rate of 5 percent per year from the date of issuance, payable in common shares. canopy said it intends to use the initial portion of net proceeds for working capital and general corporate purposes. Chief Financial Officer Judy Hong said in a statement, "Canopy Growth is executing a strategy focused on accelerating growth and profitability through changes to our Canadian operations and rapid entry into the U.S. market." Earlier this month, Canopy announced plans to close its flagship Smiths Falls growing facility and cut more than a third of its workforce as part of Canada's shift to an "asset-light model." Canopy shares are traded on the Toronto Stock Exchange's WEED and the Nasdaq's CGC.

Source: mjbizdaily.com/