Canopy Growth Corporation WEED C.G.C announced on Friday that this is the case entered into an exchange agreement with Greenstar Canada Investment Limited Partnership, a wholly owned subsidiary of Constellation Brands, Inc. in order to Cancellation of the aggregate principal amount of CA$100 million ($73.9 million) of the Company’s outstanding 4.25% unsecured notes due 2023.

As part of the exchange agreement, the Company has agreed to acquire and cancel the CA$100 million aggregate principal amount of the existing Notes held by GCILP in exchange for:

• A cash payment to GCILP equal to the unpaid and accrued interest owed under the existing Notes held by GCILP.
• A promissory note to be issued to GCILP in aggregate principal amount of $100 million, payable on December 31, 2024, bearing interest at the rate of 4.25% per annum at maturity.

The The CBI transaction is expected to close on or about April 14, 2023, subject to customary closing conditions.

Per its press release dated October 25, 2022, Canopy Growth intends to amend its articles of incorporation to create, among other things, a new class of non-voting, non-participating exchangeable shares that are convertible into common shares of the Company.

Upon the closing of the CBI Transaction and the creation of the Exchange Shares, the Company maintains its intention to negotiate an exchange with GCILP to purchase and cancel up to CA$100 million in aggregate principal amount of the Notes in exchange for Exchange Shares, subject to the Rules and Policies the Nasdaq and the Toronto Stock Exchange.

Repurchasing the promissory note in exchange for exchangeable stock would conserve the company’s treasury and reduce the company’s annual expenses.

CGC Price Action

Canopy Growth Shares were trading down 0.66% at $1.51 a share after the close on Thursday.

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