(Smiths Falls) Canopy Growth has signed a deal to swap C$255.4 million in debt for stock and some cash.
Posted at 12:04 p.m.
Under the agreement with a limited number of noteholders, the cannabis producer will get its hands on the 4.25% senior unsecured convertible notes due 2023 for approximately C$252.8 million in shares in over approximately C$3 million in cash for unpaid accrued interest.
The price used to value the shares will be the volume-weighted average price on the NASDAQ Global Select Market for 10 consecutive sessions beginning Thursday, with a floor price of US$2.50 and a high of $3.50. US per share.
Constellation Brands, which is a wholly-owned subsidiary of Greenstar Canada Investment Limited Partnership, has agreed to exchange half of the C$200 million in notes it holds under the agreement.
The company, which is already Canopy’s largest shareholder, will receive a minimum of 21.9 million shares at the offering floor price and a maximum of 30.7 million shares.
Constellation currently owns nearly 142.3 million shares of Canopy, giving it a 35.3% stake in the company.