What Canopy Growth's $150M Financing Means: Analyst

Canopy Growth Corporation WEED CGC is trading lower in the pre-market after it announced an agreement with an institutional investor for the purchase and sale of up to US$150,000,000 aggregate principal amount of senior unsecured convertible debenture.

Canopy Growth CFO Judy Hong said the company is executing a strategy focused on accelerating growth and profitability by transforming its Canadian operations and fast-tracking entry into the US market. The capital provides the company with additional flexibility to continue advancing strategic priorities.

We will monitor how the management team puts the capital to work and how the market responds to the financing. Taking on debt can prove to be costly and we hope that Canopy Growth’s team has this figured out.

With the stock, we continue to hold back on adding to our position in Canopy Growth. We believe the stock could trade lower and plan to add to the position in the mock portfolio on weakness. Stay tuned for updates!

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