Canopy Growth Corporation, a leading North American cannabis and consumer packaged goods company, has entered into a series of strategic financial agreements to strengthen its balance sheet. On April 30, 2024, Canopy USA, LLC, a U.S.-domiciled holding company created by Canopy Growth, amended its limited liability company agreement to stipulate that non-voting shares will be convertible into Class B common shares only when Nasdaq or NYSE allows the listing of companies involved in the U.S. marijuana industry. Additionally, on May 2, 2024, Canopy Growth signed an Exchange and Subscription Agreement with MMCAP International Inc. SPC, securing approximately US$50 million in new gross proceeds and extending C$27.5 million of debt maturity from 2025 to 2029. The agreement involves the issuance of a new...Show More

Canopy Growth Corporation, a leading North American cannabis and consumer packaged goods company, has entered into a series of strategic financial agreements to strengthen its balance sheet. On April 30, 2024, Canopy USA, LLC, a U.S.-domiciled holding company created by Canopy Growth, amended its limited liability company agreement to stipulate that non-voting shares will be convertible into Class B common shares only when Nasdaq or NYSE allows the listing of companies involved in the U.S. marijuana industry. Additionally, on May 2, 2024, Canopy Growth signed an Exchange and Subscription Agreement with MMCAP International Inc. SPC, securing approximately US$50 million in new gross proceeds and extending C$27.5 million of debt maturity from 2025 to 2029. The agreement involves the issuance of a new senior unsecured convertible debenture and common share purchase warrants. The transaction is expected to close during the week of May 6, 2024, subject to customary conditions. Furthermore, Canopy USA exercised options to acquire 100% of the membership interests of Wana and Jetty, leading brands in the cannabis edibles and extracts sectors, respectively. In related news, Acreage Holdings, Inc. received a notice of default regarding its credit facilities, which Canopy Growth is evaluating in connection with its option agreement with Acreage. The completion of Canopy Growth's acquisition of Acreage's Class E subordinate voting shares has been extended to May 9, 2024, with no certainty that the acquisition will be completed.