Why Canopy Growth Stock Is Falling
Portfolio Pulse from Henry Khederian
Canopy Growth Corp (NASDAQ:CGC) shares fell by 6.7% after the company filed for an offering of up to 45.9 million shares of common stock by the selling securityholders. The company will not receive proceeds from the sale but would receive approximately $31 million if all warrants held by the selling securityholders are exercised in full for cash. The proceeds will be used for general corporate purposes.
September 20, 2023 | 2:20 pm
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Canopy Growth Corp's stock price fell after the company filed for an offering of up to 45.9 million shares. The company could receive approximately $31 million if all warrants are exercised in full for cash.
The news of the stock offering led to a drop in Canopy Growth Corp's stock price as it increases the supply of shares, potentially diluting the value of existing shares. However, the potential proceeds from the exercise of warrants could provide the company with additional capital for corporate purposes, which could be a positive in the long term.
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