On February 4, 2019, Canopy Rivers Inc. entered into a bought deal financing with CIBC Capital Markets and Eight Capital, (together, the “joint bookrunners”), under which the joint bookrunners have agreed to purchase, together with a syndicate of underwriters, 11,500,000 subordinated voting shares of Canopy Rivers, at a price of $4.80 per subordinated voting share, for gross proceeds of $55 million. Canopy Rivers has agreed to grant the underwriters an over-allotment option to purchase up to an additional 1,725,000 subordinated voting shares at a price of $4.80 per subordinated voting share, exercisable in whole or part, prior to 30 days following the scheduled closing date of February 27, 2019.
Concurrent with the bought deal financing, Canopy Growth Corporation will purchase a minimum of 6,250,000 subordinated voting shares on a private placement basis, at a price of $4.80 per subordinated voting share, for additional gross proceeds of a minimum of $30 million. The combined gross proceeds to Canopy Rivers from the bought deal financing and the private placement are a minimum of $85 million.
Cassels is acting for Canopy Rivers with a deal team that includes Sean Maniaci, Jamie Litchen, Jonathan Sherman and David Singh (Securities and Cannabis) and Chris Norton and Tera Li Parizeau (Tax).