Canopy Growth Corp. (TSX:WEED) (OTC:TWMJF) (FRA:11L1) is a true leader in the cannabis space, with a diversified portfolio of brands as well as proprietary cannabis strain varieties in both dry herb and oil extract forms. Through Canopy's wholly-owned subsidiaries, the company operates multiple cutting-edge cultivation and production facilities with north of half a million square feet of indoor and greenhouse production capacity.
Canopy Growth just announced this morning that it has accepted a subscription agreement for a private placement of common shares with one single investor. For this financing round, Canopy Growth will issue 3,105,590 common shares at a net price of $8.05 CAD per Share, for aggregate gross and net proceeds of $24,999,999.50 CAD. According to the release, the private placement will be completed on or before July 26, 2017.
Canopy Growth intends to use the proceeds of this financing round to boost its capacity and more. The best part of this private placement is that no finder's fees were paid by Canopy as part of the offering, so all of the proceeds will go directly towards the company's growth initiatives.
Bruce Linton, Chairman and CEO of Canopy commented, "Investing in production capacity expansion is vital to maintain our existing leadership position in the global cannabis industry. This equity financing gives us additional resources so we can accelerate into the windows of opportunity that exist domestically and abroad, while inserting advisory expertise as we continue to lead a sector forward into new territory."