On February 27, 2019, Canopy Rivers Inc. closed a bought deal financing and concurrent private placement for total gross proceeds of approximately $93.5 million.
Pursuant to the bought deal, Canopy Rivers issued 13,225,000 subordinated voting shares, which reflects the exercise in full of the underwriters’ over-allotment option, at a price of $4.80 per subordinated voting share for gross proceeds of approximately $63.5 million. The bought deal was completed by a syndicate of underwriters led by CIBC World Markets Inc. and Eight Capital, and included, among others, BMO Nesbitt Burns Inc. and Scotia Capital Inc. This is the first instance that three of the five largest Canadian banks have participated in a financing in the cannabis industry.
Concurrent with the bought deal, Canopy Rivers completed a private placement with Canopy Growth Corporation. Pursuant to the private placement, Canopy Growth purchased 6,250,000 subordinated voting shares at a price of $4.80 per subordinated voting share for additional gross proceeds of $30 million.
Cassels acted for Canopy Rivers with a deal team that included Sean Maniaci, Jamie Litchen, Jonathan Sherman and David Singh (Securities and Cannabis).