Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) announced today that all conversions pursuant to the US$100,000,000 senior unsecured convertible debentures (the “Convertible Debentures”), sold to an institutional investor in February 2023, have been completed.
Since the beginning of fiscal 2023, Canopy Growth has completed numerous balance sheet actions to strengthen its financial position, while implementing a business transformation plan with the goal of improving profitability. In addition to today’s announcement that preserves liquidity, the balance sheet actions completed by the Company to date include:
- Equitization of $263 million of the 4.25% Unsecured Notes due in July 2023;
- Paydown of USD$188 million (or 25% of the principal) of the senior secured term loan at $0.93 per dollar of debt;
- Refinanced $100 million of the 4.25% Unsecured Notes due in July 2023 held by Greenstar Canada Investment Limited Partnership, a wholly-owned subsidiary of Constellation Brands, Inc. (“CBI”) in order to extend the maturity date to December 31, 2024; and
- Generated $81 million in cash proceeds during the most recent fiscal quarter from the disposition of five facilities with additional agreements in place to generate up to $150 million in total proceeds by September 30 of this year.
“Today’s announcement underscores our continued commitment to deleveraging and strengthening Canopy Growth’s financial position,” said Judy Hong, Chief Financial Officer, Canopy Growth. “When paired with our ongoing cost reduction program in Canada which is on track to achieve $240-$310M in total savings by March 2024, we are well positioned to achieve improved profitability, enhance financial flexibility, and support long-term value creation.”
The Company is also undertaking a review of additional strategic options to further improve liquidity and minimize cash burn.
