Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) (“Canopy Growth” or the “Company”) announced today the issuance of C$100 million aggregate principal amount of its 4.25% convertible senior notes due 2023 (the “Over-Allotment Notes”) pursuant to the exercise in full of the over-allotment option granted to the initial purchasers in connection with the previously announced offering of C$500 million aggregate principal amount of its 4.25% convertible senior notes due 2023 (the “Initial Notes”), which closed on June 20, 2018. The Over-Allotment Notes have the same terms as the Initial Notes, including an initial conversion rate of 20.7577 common shares (“common shares”) per C$1,000 principal amount of Over-Allotment Notes, equivalent to an initial conversion price of approximately C$48.18 per common share.
The Company intends to use the net proceeds from the sale of the Initial Notes and the Over-Allotment Notes for supporting expansion initiatives and general corporate purposes, including working capital requirements.
Cowen and Company, LLC and BMO Nesbitt Burns Inc. acted as joint bookrunning managers and Eight Capital and Bryan, Garnier & Co. acted as co-managers for this offering. Greenstar Canada Investment Limited Partnership, an affiliate of Constellation Brands, Inc., purchased C$200 million in Initial Notes in the offering and the remainder of the offering was widely allocated to institutions, primarily in the United States, Europe, as well as Canada.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities (including any common shares of Canopy Growth into which the Initial Notes or Over-Allotment Notes are convertible) and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Here’s to Future Growth.