Canopy Growth Announces Refinancing of C$100 Million Debt Due 2023
SMITH FALLS, Ontario, April 14, 2023 /PRNewswire/ – Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) today announced an exchange agreement (“Constellation Brands, Inc. (“CBI”) with Greenstar Canada Investment Limited Partnership (“GCILP”), a wholly owned subsidiary of the Company”), for the extinguishment of an aggregate principal amount of Canadian dollars (approximately US$73.9 million). 4.25% Unsecured Notes due 2023 (“Existing Notes”).
Pursuant to the Exchange Agreement, the Company has agreed to acquire and terminate an aggregate principal amount of C$100 million of existing notes held by GCILP in exchange for: Notes owned by GCILP. (ii) Promissory Notes (“Promissory Notes”) issued to GCILP on December 31, 2024 in an aggregate principal amount of C$100 million (collectively, the “CBI Transactions”). The promissory note bears an interest rate of 4.25% per annum, payable upon maturity of the promissory note. The CBI transaction is expected to close on or around April 14, 2023, subject to customary closing conditions.
In addition to the press release dated October 25, 2022, Canopy Growth plans to amend the article to create a new class of non-voting and non-participating exchangeable shares (“Exchangeable Shares”) is. Convertible into common stock of the Company. Following completion of the CBI transaction and creation of the exchangeable shares, the Company maintains its intention to negotiate an exchange with his GCILP to purchase up to C$100 million aggregate principal amount of promissory notes in exchange for the exchangeable shares. . Nasdaq and Toronto Stock Exchange rules and policies. Repurchasing the promissory notes in exchange for convertible shares saves our cash on hand and reduces our annual expenses.
CBI transactions are considered “related party transactions” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Shareholders in Special Transactions (“MI 61-101”). Pursuant to Sections 5.5(a) and 5.7(1)(a) of MI 61-101, we are exempt from obtaining formal stockholder valuation and minority shareholder approval for CBI transactions. CBI transactions represent less than 25% of our market capitalization as determined in accordance with MI 61-101. Additionally, the CBI transaction was approved by the Company’s Board of Directors, along with CBI’s Director Judy A. Schmeling, CBI’s Chief Financial Officer and Executive Vice President Garth Hankinson, and Executive’s Robert Hanson. James Sabia, vice president and president of CBI’s wine and spirits division and executive of CBI’s beer division, said he was interested in the CBI deal because of his position with CBI. and abstained from voting. Because the details of the CBI transaction were not finalized at that time, the Company did not file his Material Change Report 21 days prior to the completion of his CBI transaction. The Company has not received or requested any valuation of any securities or subject of his CBI transactions in the twenty-four (24) months prior to the date of this Agreement.
About crown growth
Canopy Growth is a leading North American cannabis and consumer products company dedicated to unlocking the power of cannabis and improving lives. Through an unwavering commitment to consumers, Canopy Growth offers innovative products focused on premium and mainstream cannabis brands such as Doja, 7ACRES, Tweed and Deep Space. Our CPG portfolio defines categories, including sugar-free sports hydration brand BioSteel, This Works’ targeted 24-hour skincare and wellness solutions, Martha Stewart CBD’s gourmet wellness products, and his Storz & Bickel made in Germany. Features vaporizer technology. Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the US THC market. Through its stake in Acreage Holdings, Inc., it is a vertically integrated multi-state cannabis operator with primary operations in the densely populated states of the Northeast and Wana State. Brands, North America’s leading cannabis edible brand, and Jetty Extracts, California-based producers of high-quality cannabis extracts and pioneers of clean arc technology. Beyond world-class products, Canopy Growth advances the industry through our commitment to social equity, responsible use and reinvestment in our communities. This is pioneering a future where cannabis is understood and welcomed for its potential to help achieve better well-being and improved lives. . For more information, see: www.canopygrowth.com.
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