Canopy Growth (TSX: CGC) (OTC: TWMJF) announced the largest equity raise to date for the Canadian cannabis sector, raising over $60mm in a bought deal led by GMP Securities and Dundee Capital Partners, which are selling 5.662mm shares at $10.60. The underwriters have an option to increase the size by 849,300 shares, which would increase the amount raised to $69mm. The deal is expected to close on December 22nd.
The CGC deal was priced at just a 6.6% discount to the closing price on 12/2 of 11.35. Year-to-date, the stock has increased 282%.
Since the election of Justin Trudeau in 2015, Canadian LPs have raised over $470mm in offerings, not including the exercise of warrants:
Additionally, the company hired investment bank Cowen and Company to provide financial advisory services in the United States. The investment bank issued its initial coverage of the cannabis industry earlier this year.
