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Canopy Growth Completes $500 Million Offering, the Largest Financing to Date in the Cannabis Industry

Published: 06/20/2018

Team: John P. Vettese, Andrea FitzGerald, Jonathan Sherman, Amanda Metallo, Charles (Chuck) Rich, Daniel P. Cipollone, James G. Morand

On June 20, 2018, Canopy Growth Corporation closed its offering of $500 million aggregate principal amount of its 4.25% convertible senior notes due 2023. The initial conversion rate for the notes was 20.7577 common shares per $1,000 principal amount of the notes, equivalent to an initial conversion price of approximately $48.18 per share.

Cowen and Company, LLC and BMO Nesbitt Burns Inc. acted as joint book-running managers and Eight Capital and Bryan, Garnier & Co. acted as co-managers. Greenstar Canada Investment Limited Partnership, an affiliate of Constellation Brands, Inc., purchased $200 million in notes in the offering and the remainder of the offering was widely allocated to institutions, primarily in the United States, Europe, as well as Canada.

Canopy Growth intends to use the net proceeds from the sale of the notes for supporting expansion initiatives and general corporate purposes, including working capital requirements.

Cassels Brock acted for Canopy Growth with a team that included John Vettese, Andrea FitzGerald, Jonathan Sherman and Amanda Metallo (Securities and Cannabis), Chuck Rich and Daniel Cipollone (Financial Services and Cannabis) and James Morand (Tax).