Canopy Growth Corporation completes $60 million bought deal financing
Canopy Growth Corporation announced today that it has completed a $60 million bought deal financing. A total of 5,662,000 common shares in the capital of the Company (the “Shares”) were sold at a price of $10.60 per Share, for aggregate gross proceeds of $60,017,200 (the “Offering”). The Offering was underwritten by a syndicate of underwriters led by GMP Securities L.P. (“GMP”) and Dundee Capital Partners (“Dundee”), and including Cormark Securities Inc., PI Financial Corp., and Canaccord Genuity Corp. (collectively with GMP and Dundee, the “Underwriters”).
Canopy Growth Corp. said it intends to use proceeds from the Offering primarily for potential real estate acquisitions and fit-up of growing operations at such locations. In the event such potential acquisitions are not completed, a majority of the funds will be used to expand capacity at the Company’s existing sites over the next 12 months. Additionally, the Company expects to incur international development expenditures of approximately $2,000,000 primarily to further explore and develop international market opportunities where federally legal to do so. The balance of the net proceeds will be used for general working capital purposes, such as potential acquisitions for both capacity and brand augmentation and related integration, and developing new product offerings. The Company may reallocate these funds as market and regulatory indicators warrant in light of the anticipated legalization of a national recreational cannabis market and the ACMPR.
LaBarge Weinstein acted as counsel to Canopy Growth Corporation with a team that included Debbie Weinstein, Kyle Lavender, Tayyaba Khan and Nick Jasperse.