Canopy Growth closes $24.25M private financing

CPE News

Smiths Falls, ON (pcJ News Briefs) – Canopy Growth Corporation (TSX: WEED) has completed a private placement with one unnamed investor of 2,500,000 common shares at $9.70 per share for aggregate net proceeds of $24,250,000. No finder’s fees were paid as part of the offering.

“With the recent addition of Canopy Growth to the S&P/TSX Composite Index, imminent Canadian adult access markets and the awakening of legal cannabis markets in Germany, Australia, Brazil, Israel and elsewhere around the globe, we are entering a very opportunistic period for our business,” said Bruce Linton, Chairman & CEO. “This equity financing gives us more resources so we can accelerate into this expected window of opportunity.”

Canopy Growth intends to use the proceeds for capacity growth initiatives as well as general corporate and working capital purposes.

Goldman Holdings Ltd., a company controlled by Canopy Growth board member Murray Goldman, also agreed to enter into a securities lending agreement with the investor to provide free-trading shares in exchange for shares acquired in this offering which are restricted from trading for a period of four months from the issue date.

Canopy Growth is a diversified cannabis company, offering diverse brands and curated cannabis strain varieties in dried and oil extract forms.

photo credit: Canopy Growth