SMITHS
FALLS, ON., Jan. 9, 2024 – PRESS RELEASE
– Canopy Growth Corp. announced
that it has entered into subscription agreements dated as of Jan. 9, 2024, with
certain institutional investors in a private placement offering of 6,993,007
units at a price per unit of US$4.29 for aggregate gross proceeds of
approximately US$30,000,000
The purpose of the offering is to provide the company
with additional liquidity of US$30 million to further strengthen Canopy
Growth’s financial position. Proceeds are expected to be used to pay down debt,
which is consistent with the company’s strategy for overall debt reduction, as
well as for working capital and other general corporate purposes.
Each unit will be comprised
of (a) one common share of the company (a “Common Share”) and (b)(i) one Series A Common Share purchase warrant (a “Series A Warrant”) or (ii) one Series B Common Share purchase warrant (a “Series B Warrant” and, together with the Series A Warrants, the “Warrants”).
Each Warrant will entitle the holder to acquire one Common
Share from the company at a price equal to US$4.83. The Series A Warrants will
be exercisable immediately following the closing of the offering for a period
of five years from such date and the Series B Warrants will be exercisable for
a period commencing on the date that is six months following the closing of the
Offering and ending on the date that is five years following such date.
The company has also agreed to provide investors with
customary registration rights. The
closing of the private placement pursuant to the subscription agreements is
expected to occur on or about Jan. 10, 2024, subject to customary closing
conditions.
This news release is issued pursuant to Rule
135c under the Securities Act of 1933 and shall not constitute an offer to sell
or a solicitation of an offer to buy these securities, nor shall there be any
sale of these securities in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state or other
jurisdiction. Any offering of the securities under the resale registration
statement will only be by means of a prospectus.
