Why Canopy Growth (CGC) Shares Are Tanking Friday

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Canopy Growth Corporation CGC shares are tanking on Friday after the company announced a deal with certain noteholders to acquire CA$12.5 million ($9.4 million) worth of notes in exchange for common shares of the company and cash.

The Details:

CGC shares are trading over 10% lower on Friday after the company will equitize CA$12.5 million ($9.4 million) worth of senior notes. As part of the transaction, Canopy Growth will cancel the aggregate principal amount of the notes and issue around 24.3 million of its shares. The deal will be conducted as a private placement. HudsonWest LLC served as the financial advisor for the company in this transaction.

Judy Hong, CFO of Canopy Growth, commented, "We are pleased to have reached an agreement to equitize these notes and remain focused on further strengthening Canopy's financial position. This announcement builds on other already completed actions to preserve cash and provide additional financial flexibility."

Related News: What's Going On With Adobe Stock Friday

CGC Price Action: According to Benzinga Pro, Canopy Growth shares are trading 10.6% lower at 39 cents at the time of publication.

Image: rexmedlen from Pixabay

 

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CGCCanopy Growth Corp
$0.9100-1.09%

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