Business
Canopy Growth to Strengthen Balance Sheet with Early Prepayments Set to Reduce Term Loan by US$50 Million; Annual Cash Interest Expense Expected to be Reduced by US$6.5 Million
This news release constitutes a “designated news release” for the purposes of Canop...
About this update from Canopy Growth Corporation
[{"type":"text","content":"Canopy Growth to Strengthen Balance Sheet with Early Prepayments Set to Reduce Term Loan by US$50 Million; Annual Cash Interest Expense Expected to be Reduced by US$6.5 Million\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n \n\n\n\n\n\n This news release constitutes a “designated news release” for the purposes of Canopy Growth’s prospectus supplement dated February 28, 2025 to its short form base shelf prospectus dated June 5, 2024.\n \n\n\n\n\n\n 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 entered into an agreement (the “Agreement”) with certain of its lenders (the “Lenders”) to make three prepayments that are expected to reduce the Company’s Senior Secured Term Loan (the “Term Loan”) by US$50 Million by March 31, 2026. The Agreement was entered into in order to facilitate the Acreage Financing (as defined below).\n \n\n Under the terms of the Agreement, Canopy Growth agreed to make the following prepayments under the Term Loan: (i) US$25,000,000 at par on or about July 31, 2025; (ii) US$10,000,000 at par on or prior to December 31, 2025; and (iii) US$15,000,000 at par on or prior to March 31, 2026 (collectively, the “Prepayments”). When completed, the Prepayments are expected to reduce the Company’s interest expense under the Term Loan by approximately US$6.5 million on an annualized basis.\n \n\n “These prepayments reflect our continued focus on strengthening our balance sheet and lowering cash interest expense,” said Luc Mongeau, Chief Executive Officer. “Reducing debt is essential to creating the financial flexibility Canopy Growth’s needs to drive sustainable growth now and in the future.”\n \n\n In connection with the Agreement, Canopy USA, LLC (“Canopy USA”) obtained consent from the Company (the “Acreage Financing Consent”) in order for Canopy USA to secure an additional US$22 million in funding for Acreage Holdings, Inc. (“Acreage”) and its subsidiaries (the “Acreage Financing”). The Acreage Financing Consent required the co...