Canopy Growth Corporation CGC WEED announced that all conversions pursuant to the $100 million senior unsecured convertible debentures, sold to an institutional investor in February 2023, have been completed.
Since the beginning of fiscal 2023, Canopy Growth has completed numerous balance sheet actions to strengthen its financial position, while implementing a business transformation plan with the goal of improving profitability. In addition to today's announcement that preserves liquidity, the balance sheet actions completed by the company to date include:
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Equitization of CA$263 million of the 4.25% unsecured notes due in July 2023;
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Paydown of $188 million (or 25% of the principal) of the senior secured term loan at $0.93 per dollar of debt;
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Refinanced CA$100 million of the 4.25% unsecured notes due in July 2023 held by Greenstar Canada Investment Limited Partnership, a wholly-owned subsidiary of Constellation Brands, Inc. STZ in order to extend the maturity date to December 31, 2024; and
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Generated CA$81 million in cash proceeds during the most recent fiscal quarter from the disposition of five facilities with additional agreements in place to generate up to CA$150 million in total proceeds by September 30 of this year.
"Today's announcement underscores our continued commitment to deleveraging and strengthening Canopy Growth's financial position," stated Judy Hong, CFO, Canopy Growth. "When paired with our ongoing cost reduction program in Canada which is on track to achieve CA$240-CA$310 million in total savings by March 2024, we are well positioned to achieve improved profitability, enhance financial flexibility, and support long-term value creation."
The company is also undertaking a review of additional strategic options to further improve liquidity and minimize cash burn.
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