Canopy Growth (TSX: WEED) is again returning to the trough with their hands out. The company this morning indicated they will again be raising funds, after having conducted an upsized financing in January.
True to form, Canopy is raising the funds from a single institutional investor, with the financing expected to result in US$50 million in gross proceeds. The company at the same time will be exchanging C$27.5 million in existing debt that is due September 2025 for a new senior unsecured convertible debenture that is due in 2029.
Collectively, Canopy Growth will be issuing a convertible debenture with an aggregate value of C$96.4 million, which will bear interest at a rate of 7.5% per year, payable semi-annually. The debt is set to convert at a price of $14.38 per common share.
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3.35 million warrants are to be issued in connection with the financing, which will contain an expiry of five years and an exercise price of $16.18 per common share.
The financing is slated to close on May 6.
Canopy Growth last traded at $14.19 on the TSX.
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