English
Français
Deutsch
Italiano
Português
Русский
Español
简体中文
日本語
By Adriano Marchese
Canopy Growth shares tumbled in early trading on Monday after the company said that it is looking to raise $50 million with private investors to strengthen its balance sheet.
At 9:35 a.m. ET, shares were trading in Toronto nearly 15% lower at 1.56 Canadian dollars ($1.15).
The Canadian cannabis and consumer-packaged goods company said that it plans to use the new money to strengthen its financial position as well as for working capital and other general corporate purposes.
On Thursday, Canopy Growth said it would move to file bankruptcy for its BioSteel sports nutrition unit and would cease funding the business, immediately eliminating a source of significant cash burn for Canopy Growth.
The private placement consists of subscription agreements, offering about 22.9 million of its units at a price of $1.09 each to raise $25 million.
The investors also hold an overallotment option to acquire an additional 22.9 million shares to raise a further $25 million at the same per-share price.
Each unit will be made up of one common share of the company and one warrant which entitles the holder to acquire one common share at a price of $1.35 for up to five years.
Write to Adriano Marchese at [email protected]
Read the full article here
