SMITHS
FALLS, ON, Oct. 17, 2024 /PRNewswire/ - Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NASDAQ:
CGC), a world-leading cannabis company dedicated to unleashing the
power of cannabis to improve lives, announced today that it has
made an early prepayment under its senior secured term loan (the
"Term Loan") in an aggregate principal amount equal to US$100 million at a discounted price of
US$97.5 million. This proactive move,
which in addition to reducing the Company's leverage results in
annualized interest expense savings of approximately US$14 million, underscores the Company's strong
commitment to fiscal discipline and further strengthens its
financial position as it continues to execute on its strategic
priorities.
As previously announced in August
2024, this prepayment was agreed to between the Company and
its senior lenders as part of a series of amendments to the Term
Loan (the "Term Loan Amendment"), which, among other things,
included an extension of the Term Loan's maturity date to
December 18, 2026. Pursuant to the
Term Loan Amendment, the Company has the option to make an
additional prepayment equal to US$100
million at a discounted price of US$97.5 million by March
31, 2025 (the "Second Prepayment"). If payment of the Second
Prepayment is made, the maturity date of the Term Loan will
automatically further extend to September
18, 2027.
Judy Hong, CFO of Canopy Growth,
commented: "This early prepayment reflects our ongoing commitment
to reducing cash burn and strengthening our capital structure. Our
proactive steps to reduce debt and extend maturity enhance our
balance sheet flexibility to invest in growth areas and drive
long-term value creation for our shareholders."
The early prepayment of the Term Loan demonstrates Canopy
Growth's continued focus on reducing debt and improving its balance
sheet, positioning the Company for sustainable growth in the
evolving global cannabis market.
About Canopy Growth
Canopy Growth is a world leading cannabis company dedicated to
unleashing the power of cannabis to improve lives. Through an
unwavering commitment to our consumers, Canopy Growth delivers
innovative products with a focus on premium and mainstream cannabis
brands including Doja, 7ACRES, Tweed, and Deep Space, in addition
to category defining vaporizer technology made
in Germany by Storz & Bickel.
Canopy Growth has also established a comprehensive ecosystem to
realize the opportunities presented by the U.S. THC market through
an unconsolidated, non-controlling interest in Canopy USA, LLC ("Canopy USA"). Canopy USA has closed the acquisitions of
approximately 75% of the shares of Lemurian, Inc. ("Jetty") and
100% of the entities that make up Wana
Brands ("Wana"). Jetty owns and operates Jetty Extracts, a
California-based producer of
high-quality cannabis extracts and pioneer of clean vape
technology, and Wana is a leading North American edibles brand. The
option to acquire Acreage Holdings, Inc., a vertically integrated
multi-state cannabis operator with principal operations in densely
populated states across the Northeast and Midwest, has also been
exercised.
Beyond its world-class products, Canopy Growth is leading the
industry forward through a commitment to social equity, responsible
use, and community reinvestment – pioneering a future where
cannabis is understood and welcomed for its potential to help
achieve greater well-being and life enhancement.
For more information visit www.canopygrowth.com.
References to information included on, or accessible through,
our website do not constitute incorporation by reference of the
information contained at or available through our website, and you
should not consider such information to be part of this press
release.
Forward-Looking Statements
This news release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation. Often, but
not always, forward-looking statements and information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "estimates", "intends", "anticipates"
or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements or information involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company or
its subsidiaries to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements or information contained in this news
release. Examples of such statements and uncertainties include
statements with respect the reduction of interest costs; the
maturity date of the Term Loan; and expectations and outcomes
relating to Canopy Growth's steps to reduce debt.
Risks, uncertainties and other factors involved with
forward-looking information or statements could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information, including the conditions precedent to the acquisition
of Acreage not being satisfied or waived; negative operating cash
flow; uncertainty of additional financing; use of proceeds;
volatility in the price of the Company's common shares;
expectations regarding future investment, growth and expansion of
operations; regulatory and licensing risks; changes in general
economic, business and political conditions, including changes in
the financial and stock markets and the impacts of increased rates
of inflation; legal and regulatory risks inherent in the cannabis
industry, including the global regulatory landscape and enforcement
related to cannabis; additional dilution; political risks and risks
relating to regulatory change; risks relating to anti-money
laundering laws; compliance with extensive government regulation
and the interpretation of various laws regulations and policies;
public opinion and perception of the cannabis industry; and such
other risks contained in the public filings of the Company filed
with Canadian securities regulators and available under the
Company's profile on SEDAR+ at www.sedarplus.com and with the
Securities and Exchange Commission through EDGAR at
www.sec.gov/edgar, including under the heading "Risk Factors" in
the Company's annual report on Form 10-K for the year ended
March 31, 2024, and its subsequently
filed quarterly reports on Form 10-Q.
In respect of the forward-looking statements and information,
the Company has provided such statements and information in
reliance on certain assumptions that they believe are reasonable at
this time. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information or
forward-looking statements in this news release are reasonable,
undue reliance should not be placed on such information or
statements and no assurance can be given that such events will
occur in the disclosed time frames or at all. Should one or more of
the foregoing risks or uncertainties materialize, or should
assumptions underlying the forward-looking information or
statements prove incorrect, actual results may vary materially from
those described herein as intended, planned, anticipated, believed,
estimated or expected. Although the Company has attempted to
identify important risks, uncertainties and factors which could
cause actual results to differ materially, there may be others that
cause results not to be as anticipated, estimated or intended. The
forward-looking information and forward-looking statements included
in this news release are made as of the date of this news release
and the Company does not undertake any obligation to publicly
update such forward-looking information or forward-looking
statements to reflect new information, subsequent events or
otherwise unless required by applicable securities laws.
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SOURCE Canopy Growth Corporation