Canopy Growth to issue $200 million in new stock shares
Canada-based Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC) on Friday announced a new at-the-market equity program to sell $200 million worth of new stock shares in the U.S. and its home country, to raise money for new expansion plans.
In a press release, Canopy revealed that the shares will be sold through the Nasdaq and the Toronto Stock Exchange or “any other available U.S. or Canadian trading market for the Common Shares,” but it’s not yet clear exactly when the new sale will begin or end.
Canopy also noted that the prices of the new shares will vary depending on when they’re sold, but the new shares “will be distributed at market prices prevailing at the time of each sale.”
The company said in a press release that the proceeds from new shares will pay for “investments in businesses and/or to fund any potential future acquisitions and for working capital and general corporate purposes,” which may include repaying outstanding debts.
In its most recent quarter, Canopy reported a net loss of C$121.9 million and debts of C$442 million.
The Canadian cannabis giant has also been working on a multiyear plan to enter the U.S. marijuana market through a relatively new subsidiary, Canopy USA, which just named Brooks Jorgensen as president in January, after it had closed on acquisition deals of multistate edibles company Wana Brands and multistate operator Acreage Holdings (CSE: ACRG.A.U) (OTCQX: ACRHF).
