A private placement of shares and warrants announced by Canopy Growth Corp. was terminated only three days after it was unveiled, the Canadian cannabis operator disclosed in a regulatory filing with the U.S. Securities and Exchange Commission.
However, Canopy also said in the filing that it expects to be in a position to complete customary closing requirements in the next few weeks.
The Smiths Falls, Ontario-based company wouldn’t answer a query from MJBizDaily about whether the deal could be revived.
On Jan. 9, the Canadian cannabis producer announced it had entered into subscription agreements with institutional investors to sell roughly 6.9 million units in a private placement.
Gross proceeds would have been approximately $30 million (40.5 million Canadian dollars).
The private placement was supposed to close Jan. 10.
But on Jan. 12, Canopy said it terminated the subscription agreements because of issues experienced by a third party.
Canopy said it “received information from a third party that such third party could not complete certain tasks in a timely manner, which would result in delays outside of the company’s control and impact the company’s ability to satisfy customary closing requirements.”
The third party was not identified in the SEC filing.
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