Canadian cannabis company Canopy Growth Corp. CGCCA:WEED on Tuesday announced an agreement with an institutional investor to purchase up to $150 million of senior unsecured convertible bonds. Under the terms of the deal, the investor has purchased an initial $100 million of the bonds and will purchase the remaining $50 million once certain conditions are met or waived. “..No cash will be payable by Canopy Growth in any circumstances in respect of principal, interest or any other amounts owing pursuant to the terms of the Convertible Debentures,” the company said in a statement. “Canopy Growth is executing a strategy focused on accelerating growth and profitability by transforming our Canadian operations and fast-tracking entry into the U.S. market,” Canopy Chief Financial Officer Judy Hong said in a statement. Proceeds of the deal will be used for working capital and general corporate purposes. The U.S.-listed stock slid 6% premarket and is down 67% in the last 12 months, while the S&P 500 SPX has fallen 6%.
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