/THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
SMITHS FALLS, ON, Aug. 24, 2016 /CNW/ - Canopy Growth Corporation
(TSX: 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 9,453,000
common shares in the capital of the Company (the "Shares") were
sold at a price of $3.65 per Share,
for aggregate gross proceeds of $34,503,450 (the "Offering"). The Offering was
underwritten by a syndicate of underwriters led by GMP Securities
L.P. and Dundee Securities Ltd.
The Company intends to use the net proceeds from the Offering
primarily to expand its cannabis oil extraction capacity, including
the addition of encapsulation equipment, add multilayer flowering,
grow and drying rooms, complete building improvements at all
locations and develop international business opportunities.
The international development expenditures are primarily related to
the further exploration and development of the market opportunity
in Germany. The balance of the net
proceeds will be used for general working capital purposes, such as
potential acquisitions and integration, developing new product
offerings, and supporting marketing efforts to penetrate the
Quebec market. 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. The Company has begun the initial
build out and conversion of space at its Smiths Falls facility during the first quarter
of the 2017 fiscal year, which principally relates to building
breeding rooms, developing a dealer license area and building
improvements. 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 by way of a short form prospectus dated
August 18, 2016 in (i) each of the
provinces of Canada, except
Quebec, pursuant to National
Instrument 44-101 – Short Form Prospectus Distributions; (ii)
the United States on a private
placement basis pursuant to an exemption from the registration
requirements of the United States Securities Act of 1933, as
amended; and (iii) in jurisdictions outside of Canada and the
United States, as agreed to between the Company and GMP, in
each case in accordance with all applicable laws provided that no
prospectus, registration statement or similar document was required
to be filed in such jurisdiction and the Company will not be
subject to any continuous disclosure requirements in such
jurisdiction. 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 or
to, or for the account or benefit of, United States persons 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 news 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.
About Canopy Growth Corporation
Canopy Growth is a world-leading diversified cannabis company,
offering diverse brands and curated cannabis strain varieties in
dried and oil extract forms. Through its wholly-owned subsidiaries,
Tweed Inc., Tweed Farms Inc., and Bedrocan Canada Inc., Canopy
Growth operates three state-of-the-art production facilities with
over half a million square feet of indoor and greenhouse production
capacity. Canopy Growth has established partnerships with leading
sector names in Canada and abroad.
For more information please visit 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, Tweed Inc., Tweed
Farms Inc. or Bedrocan Canada Inc. to be materially different from
any future results, performance or achievements expressed or
implied by the forward-looking statements. Examples of such
statements include the anticipated 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 ability to obtain any necessary financing; 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.
For further information about Canopy Growth's proposed use of
proceeds and the risks associated with an investment in Canopy
Growth please refer to Canopy Growth's final short form prospectus
dated August 18, 2016 and filed 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 the Toronto Stock Exchange nor its Regulation Services
Provider (as that term is defined in policies of the Toronto Stock
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Canopy Growth Corporation