SMITHS FALLS, Ont. – Canopy Growth Corp. has signed two deals to exchange C$262.7 million of its debt for shares and a little bit of cash.<\/p>\n
Under the agreements with a limited number of noteholders, the cannabis company will acquire the 4.25 per cent unsecured convertible senior notes due in 2023 for about C$259.9 million in shares plus approximately C$3.1 million in cash for accrued and unpaid interest.<\/p>\n
The largest of these agreements accounts for C$255.4 million of the debt, while the other announced Thursday afternoon is for $7.25 million of debt and cash.<\/p>\n
The price used to value the shares will be the volume-weighted average trading price on the Nasdaq Global Select Market for the 10 consecutive trading days beginning Thursday, subject to a floor price of US$2.50 and a maximum of US$3.50 per share.<\/p>\n
Constellation Brands Inc., through its wholly owned subsidiary Greenstar Canada Investment Limited Partnership, has agreed to swap half of the C$200 million in notes it holds under the larger deal.<\/p>\n
The company, which is already Canopy's largest shareholder, will receive a minimum of 21.9 million Canopy shares based on the floor price and a maximum of 30.7 million shares.<\/p>\n
Constellation currently holds nearly 142.3 million Canopy shares, representing a 35.3 per cent stake in the company.<\/p>\n
Canopy's shares plunged 18.5 per cent to $3.66 Thursday on the Toronto Stock Exchange following the announcement of the largest note offering.<\/p>\n
This report by The Canadian Press was first published June 30, 2022.<\/p>\n
Companies in this story: (TSX:WEED)<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
SMITHS FALLS, Ont. – Canopy Growth Corp. has signed two deals to exchange C$262.7 million of its debt for shares and a little bit of cash. Under the agreements with a limited number of noteholders, the cannabis company will acquire the 4.25 per cent unsecured convertible senior notes due in 2023 for about C$259.9 million […]<\/p>\n","protected":false},"author":362,"featured_media":1183,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"guid":"","source":"The Canadian Press","byline":"The Canadian Press","published":"2022-06-30T07:00:28","updated":"2022-06-30T22:00:00","_infotelid":"IT92589","_prepressid":"92589","_multisite_post_sync":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[379,2,391,381],"tags":[],"region":[309,310,311,312],"class_list":["post-96","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured3","category-in420","category-nonit","category-topnews","region-kamloops","region-kelowna","region-penticton","region-vernon"],"blocksy_meta":[],"jetpack_featured_media_url":"https:\/\/staging.infonews.ca\/in420\/wp-content\/uploads\/sites\/3\/MediaItemID92589-5963.jpg","post_modified":"2022-06-30T22:00:00","post_modified_gmt":"2022-07-01T05:00:00","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/posts\/96","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/users\/362"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/comments?post=96"}],"version-history":[{"count":3,"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/posts\/96\/revisions"}],"predecessor-version":[{"id":3569,"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/posts\/96\/revisions\/3569"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/media\/1183"}],"wp:attachment":[{"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/media?parent=96"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/categories?post=96"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/tags?post=96"},{"taxonomy":"region","embeddable":true,"href":"https:\/\/staging.infonews.ca\/in420\/wp-json\/wp\/v2\/region?post=96"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}