Canopy Growth Corp. of Canada (TSX WEED, NASDAQ CGC) announced Friday that it would be launching a new program for at-the market equity to sell 200 million dollars worth of stock in both the U.S. as well as its own country to raise funds to finance new expansion plans.
Canopy said in a release that shares would be traded on the Nasdaq or the Toronto Stock Exchange, or any other U.S. and Canadian market available for Common Shares. However, it is unclear when exactly the new sales will start or finish.
Canopy noted also that prices for the new shares would vary based on the date they are sold. However, the company said the “new shares” will be issued at current market price at each time.
According to a company press release, proceeds will be used for “investments into businesses or for funding any future acquisitions. They may also fund working capital for the corporation and other corporate functions.” These purposes could include repayment of outstanding debt.
Canopy’s most recent quarterly report showed a loss net of C$121.9 millions and debts totaling C$442million.
Canopy USA has developed a plan for entering the U.S. cannabis market over a period of several years. Brooks Jorgensen, its president, was just appointed in January.