Canopy Growth Corp. (WEED.T) said Wednesday it has entered a loan financing agreement with TerrAscend Corp. for C$80.5 million ($58.8 million). As part of the deal, TerrAscend has issued 17.8 million warrants to purchase common stock. Canopy, the Canadian cannabis market leader, initially invested in TerrAscend in November 2017. Proceeds of the deal will be used to finance Canadian operations, its Arise Bioscience U.S. hemp division, international expansion, to repay debt and for general corporate purposes. Canopy shares were down 1.3% premarket and have fallen 69% in the last 12 months, while the ETFMG Alternative Harvest ETF (MJ) has fallen 67% and the S&P 500 has gained 4%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 11, 2020 07:14 ET (11:14 GMT)
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