Constellation-backed marijuana company continues its moves to strengthen its balance sheet
Canopy Growth Corp.’s stock was down 9.5% to $4.56 a share on Tuesday after the company said it agreed to sell $30 million in units in a private placement with institutional investors.
While it’s backed by deep-pocketed liquor giant Constellation Brands Inc., STZ, +1.42%, Canopy Growth CGC, -8.73% WEED, -8.75% has yet to turn a profit and it’s been making moves to strengthen its balance sheet.
Canopy Growth said it OK’d the sale at a price of $4.29 per unit, which is below the stock’s closing price of $5.04 a share on Monday.
Canopy Growth will use the proceeds to reduce its debt.
Each unit will be made up of one common share of the company and one warrant, which will entitle holders to buy one common share at $4.83 a share.