Canopy Growth Stock Tumbles 10% After It Announces Private Placement of up to $50 Million to Boost Liquidity
Canopy Growth Corp. said Monday it has entered agreements with institutional investors for a private placement of up to $50 million as it again moves to boost liquidity. The Canadian cannabis company said it is offering 22.9 million units priced at $1.09 for gross proceeds of about $25 million. Investors have an over-allotment option for up to additional 22.9 million units at the same price at any time on or before Nov. 2. Each unit is equal to one common share plus a warrant to acquire an additional share at a price equal to $1.35 for a period of five years. The stock was down 10% premarket, after adding about 12% on Friday after announcing it would move to file bankruptcy for its BioSteel sports drink unit and narrow the gap for the company's adjusted losses moving forward.This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.