NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
SMITHS FALLS, ON, April 15, 2016 /CNW Telbec/ - Canopy Growth
Corporation (TSXV: CGC) ("Canopy Growth" or the
"Company") announced that it has closed its previously
announced short form prospectus offering, on a bought deal basis,
including the exercise in full of the underwriters' over-allotment
option. A total of 5,002,500 common shares in the capital of
the Company (the "Shares") were sold at a price of $2.30 per Share, for aggregate gross proceeds of
$11,505,750 (the "Offering").
The Offering was underwritten by a syndicate of underwriters
led by Dundee Securities Ltd. and including GMP Securities L.P.
The Company intends to use the net proceeds from the Offering to
expand its cannabis oil extraction capacity at Tweed Inc., add grow
rooms, invest in information technology and develop international
business opportunities. The international development
expenditures will relate to developing local strategic
partnerships, entering new regulated markets, conducting medical
research, and investing directly in such partnerships. In all
cases, the Company will remain in compliance with its regulatory
undertakings. There is no guarantee that approval of the TSX
Venture Exchange (the "TSXV") will be obtained with respect to such
activities and as such, the proceeds allocated for international
development may be used for other purposes.
The balance of the net proceeds will be used for general working
capital purposes including salaries, general maintenance,
utilities, costs of compliance with Health Canada and other
regulatory compliance and for the Company's costs associated with
client acquisition.
While the Company currently anticipates that it will use the net
proceeds of the Offering received by it as set forth above, the
Company may re-allocate the net proceeds of the Offering from time
to time, having consideration to its strategy relative to the
market and other conditions in effect at the applicable time.
The Shares were offered for sale in each of the Provinces of
Canada, except Quebec, by way of a short form prospectus
dated April 8, 2016 (the
"Prospectus"). The Shares have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, or any U.S. state securities laws, and may not be offered
or sold in the United States
absent registration or any applicable exemption from the
registration requirements of the United States Securities Act of
1933, as amended, and applicable U.S. state securities laws. This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States, nor shall there be any sale
of the Shares in any jurisdiction in which such offer, solicitation
or sale would be unlawful.
TSXV Approval of Shares for Debt Transaction
The
Company has received TSXV approval for the issuance of 38,656
common shares in the capital of the Company to XIB Consulting Inc.
("XIB"), which were issued at a price of $2.59 per share in satisfaction of $100,119.04 of indebtedness owed by the Company
to XIB pursuant to an engagement agreement between XIB and the
Company.
About Canopy Growth Corporation
Canopy Growth is one of the world's leading diversified cannabis
companies. Through the operations of its wholly-owned
subsidiaries, Tweed Inc., Tweed Farms Inc., and Bedrocan Canada
Inc., Canopy Growth offers diverse brands and curated cannabis
strain varieties in dried and oil extract forms, all supported by
three state-of‐the-art production facilities with over half a
million square feet of indoor and greenhouse production
capacity. For more information, www.canopygrowth.com.
Notice Regarding Forward Looking Statements
This news release contains forward-looking statements. Often,
but not always, forward-looking statements can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "estimates", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Canopy Growth or its subsidiaries to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Examples of such statements include statements
regarding the use of proceeds from the Offering. Such
forward-looking statements are based on a number of assumptions
which may prove to be incorrect, including, but not limited to: the
economy generally; the yield from Canopy Growth's marijuana growing
operations; consumer interest in products; competition; regulation;
and anticipated and unanticipated costs and delays. Although
Canopy Growth has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. Readers should not place undue
reliance on forward-looking statements. The factors identified
above are not intended to represent a complete list of the factors
that could affect Canopy Growth or its subsidiaries. Additional
factors are noted under the heading "Risk Factors" in the Company's
Management's Discussion and Analysis of the Financial Condition and
Results of Operations for the three and nine months ended
December 31, 2015 and the Prospectus,
each available at www.SEDAR.com. The forward-looking statements
included in this news release are made as of the date of this news
release and Canopy Growth does not undertake an obligation to
publicly update such forward-looking statements to reflect new
information, subsequent events or otherwise unless required by
applicable securities legislation.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Canopy Growth Corporation