Why Canopy Growth Shares Are Getting Smoked Today

Canopy Growth Corp CGC shares are trading lower Tuesday after the company announced a $150 million registered direct offering.

What Happened: Canopy said it entered into an agreement with an institutional investor for the purchase and sale of up to $150 million aggregate principal amount of senior unsecured convertible debentures.

"Canopy Growth is executing a strategy focused on accelerating growth and profitability by transforming our Canadian operations and fast-tracking entry into the U.S. market," said Judy Hong, CFO of Canopy Growth.

"Building on other recent actions taken to enhance cash flow, this attractive capital immediately adds to Canopy Growth's cash on hand and provides additional flexibility to continue advancing strategic priorities."

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Canopy intends to use the proceeds from the offering for working capital and general corporate purposes.

Canopy Growth is a North American cannabis company dedicated to improving lives.

See Also: Cannabis Stocks To Watch

CGC Price Action: Canopy shares are down 3.98% at $2.40 at the time of writing, according to Benzinga Pro.

Photo: 7raysmarketing from Pixabay.