Canopy Growth Announces Completion of Conversions Pursuant to US$100 Million Convertible Debentures

STOCKS Jul 3, 2023 • 9:46 AM EDT

SMITHS FALLS, ON, July 3, 2023 /CNW/ – Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) announced today that all conversions pursuant to the US$100,000,000 senior unsecured convertible debentures (the “Convertible Debentures”), sold to an institutional investor in February 2023, have been completed.

Logo: Canopy Growth CorporatiCanopy Growth Announces Completion of Conversions Pursuant to US$100 Million Convertible Debentures (CNW Group/Canopy Growth Corporation)

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:

• Equitization of $263 million of the 4.25% Unsecured Notes due in July 2023;

• Paydown of USD$188 million (or 25% of the principal) of the senior secured term loan at $0.93 per dollar of debt;

• Refinanced $100 million of the 4.25% Unsecured Notes due in July 2023held by Greenstar Canada Investment Limited Partnership, a wholly-owned subsidiary of Constellation Brands, Inc. (“CBI”) in order to extend the maturity date to December 31, 2024; and

• Generated $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 $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,” said Judy Hong, Chief Financial Officer, Canopy Growth. “When paired with our ongoing cost reduction program in Canada which is on track to achieve $240–$310M 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.

About Canopy Growth

Canopy Growth is a leading North American cannabis and CPG company dedicated to unleashing the power of cannabis to improve lives.

Through an unwavering commitment to our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep Space. Our CPG portfolio features sugar-free sports hydration brand BioSteel, targeted 24-hour skincare and wellness solutions from This Works, gourmet wellness products by Martha Stewart CBD, and category defining vaporizer technology made in Germany by Storz & Bickel.

Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through its rights to Acreage Holdings, a vertically integrated multi-state cannabis operator with principal operations in densely populated states across the Northeast, as well as Wana Brands, a leading cannabis edible brand in North America, and Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology.

Beyond our world-class products, Canopy Growth is leading the industry forward through a commitment to social equity, responsible use, and community reinvestment—pioneering a future where cannabis is understood and welcomed for its potential to help achieve greater well-being and life enhancement.

For more information visit www.canopygrowth.com.