SoFi CEO enters prepaid forward contract on 1.5 million shares
Investing.com -- Canopy Growth Corp (NASDAQ:CGC) stock fell 9.5% after the cannabis company announced a new at-the-market equity program that could dilute existing shareholders by allowing the sale of up to $200 million in common shares.
The program, established through an equity distribution agreement dated August 29, 2025, permits the company to issue shares in concurrent public offerings across U.S. and Canadian markets. The Canadian portion is limited to $50 million in gross proceeds, while ensuring total sales across both markets don’t exceed the $200 million cap.
According to the announcement, Canopy Growth plans to use the proceeds for investments in businesses, potential acquisitions, working capital, general corporate purposes, and possible debt repayment. The shares will be sold directly on NASDAQ, TSX, or other trading markets at prevailing market prices.
BMO Nesbitt Burns Inc. will serve as the Canadian agent while BMO Capital Markets Corp. will act as the U.S. agent for the program, which remains effective until June 5, 2027, or until the full $200 million in shares are sold. The Canadian portion automatically terminates on July 5, 2026, or when $50 million in shares are sold, whichever occurs first.
The new equity distribution agreement replaces a previous one dated February 28, 2025. Canopy Growth will determine the volume and timing of share sales at its discretion, subject to customary conditions.
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