Why Canopy Growth Stock Is Getting Smoked Today
Portfolio Pulse from Adam Eckert
Canopy Growth Corp (NASDAQ:CGC) announced a private placement of up to $50 million, causing its shares to trade lower. The company entered into subscription agreements with institutional investors for a private placement of nearly 23 million units at $1.09 per unit. The private placement is expected to result in gross proceeds of approximately $25 million, potentially climbing to $50 million. Canopy intends to use the additional liquidity for working capital and general corporate purposes.
September 18, 2023 | 1:58 pm
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NEGATIVE IMPACT
Canopy Growth Corp's announcement of a private placement of up to $50 million has led to a decrease in its share price.
The announcement of a private placement often leads to a decrease in share price as it dilutes the value of existing shares. In this case, Canopy Growth Corp's shares have traded lower following the announcement.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100