SMITHS
FALLS, ON, Sept. 18, 2023 /CNW/ - Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX:
WEED) (Nasdaq: CGC), today announced that it has entered into
subscription agreements (the "Subscription Agreements"),
dated September 18, 2023, with
certain institutional investors (the "Investors") in a
private placement offering (the "Offering") of 22,929,468
units ("Units") at a price per Unit of US$1.09 for aggregate gross proceeds of
approximately US$25,000,000. The
Investors also hold an over-allotment option to acquire up to an
additional 22,929,468 Units at a price per Unit of US$1.09 for aggregate gross proceeds of
US$25,000,000 at the discretion of
the Investors at any time on or before November 2, 2023 (the "Over-Allotment
Option").
The purpose of the offering is to provide the Company with
additional liquidity of up to US$50MM to further strengthen Canopy
Growth's financial position and is expected to be used for working
capital and other general corporate purposes.
Each Unit will be comprised of one common share of the Company
(a "Common Share") and one Common Share purchase warrant (a
"Warrant"). Each Warrant will entitle the holder to acquire
one Common Share from the Company at a price equal to US$1.35 for a period of five years from the date
of issuance. The Company has also agreed to provide the Investors
with customary registration rights.
The closing of the private placement pursuant to the
Subscription Agreements (not including the Over-Allotment Option)
is expected to occur on or about September
19, 2023, 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.
About Canopy Growth
Canopy Growth is a leading North American cannabis and consumer
packaged goods ("CPG") company dedicated to unleashing the power of
cannabis to improve lives. Through an unwavering commitment to our
consumers, Canopy Growth delivers innovative products with a focus
on premium and mainstream cannabis brands including Doja, 7ACRES,
Tweed, and Deep Space. Canopy Growth's CPG portfolio features
targeted 24-hour skincare and wellness solutions from This Works,
gourmet wellness products by Martha Stewart CBD, and category
defining vaporizer technology made in Germany by Storz & Bickel.
Canopy Growth has also established a comprehensive ecosystem to
realize the opportunities presented by the U.S. THC market through
its rights to Acreage Holdings, Inc., a vertically integrated
multi-state cannabis operator with principal operations in densely
populated states across the Northeast, as well as Wana Brands, a leading cannabis edible brand in
North America, and Jetty Extracts,
a California-based producer of
high-quality cannabis extracts and pioneer of clean vape
technology.
Beyond our world-class products, Canopy Growth is leading the
industry forward through a commitment to social equity, responsible
use, and community reinvestment—pioneering a future where cannabis
is understood and welcomed for its potential to help achieve
greater wellbeing and life enhancement.
For more information visit www.canopygrowth.com
Forward-Looking Statements
This news release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation. Often, but
not always, forward-looking statements and information 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 or information involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company or
its subsidiaries to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements or information contained in this news
release. Examples of such statements and uncertainties include
statements with respect to the Over-Allotment Option in connection
with the Offering; the expected closing date of the Offering;
expectations regarding the strengthening of the Company's financial
position; and expectations regarding the use of the proceeds from
the Offering.
Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information,
including negative operating cash flow; uncertainty of additional
financing; use of proceeds; volatility in the price of the Common
Shares; expectations regarding future investment, growth and
expansion of operations; regulatory and licensing risks; changes in
general economic, business and political conditions, including
changes in the financial and stock markets and the impacts of
increased rates of inflation; legal and regulatory risks inherent
in the cannabis industry, including the global regulatory landscape
and enforcement related to cannabis; additional dilution; political
risks and risks relating to regulatory change; risks relating to
anti-money laundering laws; compliance with extensive government
regulation and the interpretation of various laws regulations and
policies; public opinion and perception of the cannabis industry;
and such other risks contained in the public filings of the Company
filed with Canadian securities regulators and available under the
Company's profile on SEDAR at www.sedar.com and with the SEC
through EDGAR at www.sec.gov/edgar, including under the heading
"Risk Factors" in the Company's annual report on Form 10-K for the
year ended March 31, 2023 and its
subsequently filed quarterly reports on Form 10-Q
In respect of the forward-looking statements and information,
the Company has provided such statements and information in
reliance on certain assumptions that they believe are reasonable at
this time. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information or
forward-looking statements in this news release are reasonable,
undue reliance should not be placed on such information and no
assurance can be given that such events will occur in the disclosed
time frames or at all. Should one or more of the foregoing risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although the Company
has attempted to identify important risks, uncertainties and
factors which could cause actual results to differ materially,
there may be others that cause results not to be as anticipated,
estimated or intended. The forward-looking information and
forward-looking statements included in this news release are made
as of the date of this news release and the Company does not
undertake any obligation to publicly update such forward-looking
information or forward-looking information to reflect new
information, subsequent events or otherwise unless required by
applicable securities laws.
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SOURCE Canopy Growth Corporation