'We're Trying To Be Smart About It': New Canopy Growth CFO Says Cannabis Company Eyeing Financing Options
Canadian cannabis company Canopy Growth Corp (NYSE:CGC) is weighing its options for non-equity financing as it looks to expand to take advantage of market opportunities in the United States and Europe.
Possibilities for the company — the world’s largest cannabis firm — include setting up a real estate investment trust, as well as secured financing, the company’s new CFO Mike Lee told Bloomberg News in an interview.
“We’re … digesting the multiple options that we have in front of us, and comparing that to our business plans over the next few years,” Lee said. “We’re trying to be smart about it and build a capability that can ramp up as we put more fixed assets in place.”
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Expanding opportunities for sales outside the company’s Canadian home have arisen as cannabis legalization has spread.
CEO Bruce Linton recently said the company is planning hemp processing facilities in several U.S. states in the next year.
Lee told Bloomberg that the company, while in expansion mode, also remains focused on making its Canadian business profitable in the next 18 months.
Canopy’s overall operation will likely generate negative EBITDA for the “foreseeable future,” Lee said.
Canopy also has a pending deal to acquire Acreage Holdings Inc (OTC:ACRGF) if cannabis is federally legalized in the U.S.
Canopy Growth is scheduled to report fourth-quarter results June 20.
Canopy Growth shares were down 1.62 percent at $43.05 late in Tuesday's session.
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