Canopy Growth Corporation Completes C$500 Million Convertible Senior Notes Offering
SMITHS FALLS, ON, June 20, 2018 /CNW/ – Canopy Growth Corporation (TSX: WEED) (NYSE:CGC) (“Canopy Growth” or the “Company”) announced today the closing of its previously announced offering of C$500 million aggregate principal amount of its 4.25% convertible senior notes due 2023 (the “notes”).
The initial conversion rate for the notes is 20.7577 common shares (“common shares”) per C$1,000 principal amount of the notes, equivalent to an initial conversion price of approximately C$48.18 per share. The Company intends to use the net proceeds from the sale of the notes for supporting expansion initiatives and general corporate purposes, including working capital requirements.
Cowen and Company, LLC and BMO Nesbitt Burns Inc. acted as joint bookrunning managers and Eight Capital and Bryan, Garnier & Co. acted as co-managers for this offering. Greenstar Canada Investment Limited Partnership, an affiliate of Constellation Brands, Inc., purchased C$200 million in notes in the offering and the remainder of the offering was widely allocated to institutions, primarily in the United States, Europe, as well as Canada.
The notes, and the common shares into which the notes are convertible, have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or qualified by a prospectus in Canada. The notes and the common shares may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from registration under the Securities Act. The notes were offered only to “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) and outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. Offers and sales in Canada were made only pursuant to exemptions from the prospectus requirements of applicable Canadian provincial and territorial securities laws.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities (including any common shares of Canopy Growth into which the notes are convertible) and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Here’s to Future Growth.
About Canopy Growth Corporation
Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.
Canopy Growth has established partnerships with leading sector names including cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green House seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates ten cannabis production sites with over 2.4 million square feet of production capacity, including over 500,000 square feet of GMP-certified production space. The Company has operations in eight countries across five continents. The Company is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and through its partly owned subsidiary, Canopy Health Innovations, has devoted millions of dollars toward cutting edge, commercializable research and IP development. Through partly owned subsidiary Canopy Rivers Corporation, the Company is providing resources and investment to new market entrants and building a portfolio of stable investments in the sector. From our historic public listing to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. For more information visit www.canopygrowth.com.
