Canopy Growth Corporation (OTC:TWMJF) (TSXV:CGC) announced today that they entered an agreement with underwriters to purchase 5,662,000 common shares for $10.60 CAD per share on a bought deal basis.

What You Need to Know

This amounts to gross proceeds for Canopy of $60,017,200 CAD or approximately $45,286,949 USD at current exchange rates.

Canopy has granted the underwriters an over-allotment option to purchase up to an additional 849,300 common shares at the offering price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the offering.

This could mean additional deal proceeds of $9,002,580 CAD or approximately $6,795,041 USD for Canopy Growth Corp.

Canopy intends to use the net proceeds for capital expenditures for capacity expansion, working capital, and general corporate requirements.

The offering deal is expected to close on December 22nd, and is still subject to exchange and regulatory approvals.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

The syndicate of underwriters for the deal is co-led by GMP Securities L.P. and Dundee Capital Partners.

Separately, Cowen and Company, LLC has been engaged as financial advisor to Canopy Growth Corp. to provide financial advisory services in the United States.

Conclusion

For more information and coverage of Canopy Growth Corporation, be sure to check out their marijuana stock profile in our TSX Listed Marijuana Stocks Database. For Canopy's press release regarding the financing deal, click here.