Canopy Growth completes $24.25 million private placement financing
SMITHS FALLS, ON, March 22, 2017 /CNW/ – Canopy Growth Corporation (TSX: WEED) (OTC: TWMJF) (“Canopy Growth” or the “Company”) is pleased to announce that it has completed a private placement with one investor (the “Offering”) of common shares (the “Shares”). Pursuant to the Offering, the Company issued 2,500,000 Shares at a net price of $9.70 per Share, for aggregate net proceeds of $24,250,000.
With the recent addition of Canopy Growth to the S&P/TSX Composite Index, imminent Canadian adult access markets and the awakening of legal cannabis markets in Germany, Australia, Brazil, Israel and elsewhere around the globe, we are entering a very opportunistic period for our business. This equity financing gives us more resources so we can accelerate into this expected window of opportunity.
Bruce Linton, Chairman & CEO
The Company intends to use the proceeds of the Offering for capacity growth initiatives as well as general corporate and working capital purposes. No finder’s fees were paid by the Company as part of the Offering.
Goldman Holdings Ltd., a company controlled by Canopy Growth board member Murray Goldman, also agreed to enter into a Securities Lending Agreement with the investor to provide free-trading shares in exchange for shares acquired in this Offering which are restricted from trading for a period of four months from the issue date.
The securities mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The securities mentioned herein have not been and will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the securities in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The securities mentioned herein will be offered and sold only to non-U.S. persons in reliance on the “accredited investor” prospectus exemption in Canada.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, any securities. No offer, solicitation, purchase or sale of securities will be made in any jurisdiction, in which such an offer, solicitation, purchase or sale would be unlawful. The private placement remains subject to final acceptance by The Toronto Stock Exchange.
About Canopy Growth Corporation
Canopy Growth is a world-leading diversified cannabis company, offering diverse brands and curated cannabis strain varieties in dried and oil extract forms. Through its wholly-owned subsidiaries, Canopy Growth operates numerous state-of-the-art production facilities with over half a million square feet of indoor and greenhouse production capacity. Canopy Growth has established partnerships with leading sector names in Canada and abroad. For more information visit www.canopygrowth.com.
Original press release: http://www.newswire.ca/news-releases/canopy-growth-completes-2425-million-private-placement-financing-616815944.html
