Canopy Growth Corp
CGC shares are trading lower on Monday after the company announced a
private placement of up to $50 million.
What Happened:
Canopy announced that it has entered into subscription agreements with institutional investors for a private placement of nearly 23 million units at a price of $1.09 per unit. Each unit will consist of one common share and one warrant, which allows the holder to acquire one common share for $1.35 at any time within five years of issuance.
The private placement is expected to generate gross proceeds of approximately $25 million. Investors also have the option to acquire up to an additional 22,929,468 shares before November 2, potentially bringing the total proceeds to as much as $50 million.
Canopy intends to utilize the additional funds for working capital and general corporate purposes. The offering aims to strengthen the company’s financial position.
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CGC Price Action: Canopy Growth shares were down 12.6% at $1.17 at the time of publication, according to
Benzinga Pro.
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