On May 3, 2024, Canopy Growth Corporation entered into an exchange and subscription agreement with a single institutional investor pursuant to which Canopy Growth is expected to receive gross proceeds of approximately US$50 million and exchange approximately C$27.5 million of existing debt maturing in September 2025 for a new senior unsecured convertible debenture with a conversion price of C$14.38 and an interest rate of 7.5% per annum.
Pursuant to the terms of the agreement, the investor will acquire a convertible debenture in an aggregate principal amount of approximately C$96.4 million and Canopy Growth will issue an additional 3,350,430 common share purchase warrants to the investor. Each common share purchase warrant will entitle the holder to acquire one common share at an exercise price equal to C$16.18 per common share for a period of five years from the closing date.
Cassels is acting for Canopy Growth.