Canopy Growth Refinances CA$100M Worth Of Notes Due 2023

Canopy Growth Corporation WEED CGC announced on Friday that it has entered into an exchange agreement with Greenstar Canada Investment Limited Partnership, a wholly-owned subsidiary of Constellation Brands, Inc. in order to extinguish CA$100 million ($73.9 million) aggregate principal amount of the company's outstanding 4.25% unsecured notes due 2023.

Under the exchange agreement, the company agreed to acquire and cancel the CA$100 million aggregate principal amount of the existing notes held by GCILP in exchange for:

• A cash payment to GCILP in the amount of unpaid and accrued interest owing under the existing notes held by GCILP.
• A promissory note issuable to GCILP in the aggregate principal amount of CA$100 million, payable on December 31, 2024, which will bear interest at a rate of 4.25% per year, payable on its maturity.

The CBI transaction is expected to close on or about April 14, 2023, subject to customary closing conditions.

Further to its press release dated October 25, 2022, Canopy Growth intends to amend its articles in order to, among other things, create a new class of non-voting and non-participating exchangeable shares, which will be convertible into company common shares.

Following the closing of the CBI Transaction and the creation of the exchangeable shares, the company maintains its intention to negotiate an exchange with GCILP to purchase for cancellation up to CA$100 million aggregate principal amount of the promissory note in exchange for exchangeable shares, subject to the rules and policies of the Nasdaq and the Toronto Stock Exchange.

The repurchase of the promissory note in exchange for exchangeable shares would preserve the company's cash on hand and reduce the company's annual expenses.

CGC Price Action

Canopy Growth's shares traded 0.66% lower at $1.51 per share after the market close on Thursday.

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