Canopy Growth Announces $250M At-The-Market Equity Program
Portfolio Pulse from Jelena Martinovic
Canopy Growth Corporation (NASDAQ:CGC) has announced a $250 million at-the-market equity program to issue and sell common shares. The proceeds will support existing businesses, potential acquisitions, and general corporate purposes. The announcement follows Canopy's move to acquire Acreage Holdings.
June 06, 2024 | 1:58 pm
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Canopy Growth Corporation announced a $250 million at-the-market equity program to issue and sell common shares. The proceeds will support existing businesses, potential acquisitions, and general corporate purposes. Shares traded 4.48% lower pre-market.
The announcement of an at-the-market equity program often leads to a dilution of existing shares, which can negatively impact the stock price in the short term. The 4.48% pre-market drop reflects investor concerns about dilution.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Canopy Growth's announcement of a $250 million at-the-market equity program follows its move to acquire Acreage Holdings. The acquisition is expected to close in the first half of 2025.
The equity program will provide Canopy with the necessary funds to support its acquisition of Acreage Holdings. This is a positive development for Acreage as it ensures financial backing for the deal.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50