Canopy Growth ends deals for $30M private placement

Kazyaka/iStock via Getty Images Shares of Canopy Growth ( NASDAQ: CGC ) gained in the U.S. premarket trading Tuesday after the Canadian cannabis company terminated agreements it entered last week with a view to raise ~$30M through a private placement. Last week, Canopy ( CGC ) was among the notable decliners after announcing the private placement, which followed several subscription agreements with certain institutional investors.

In a regulatory filing on Friday , the Canadian Licensed Producer said that before closing the transaction, a third party informed of its inability to complete certain related tasks. The third party issue “would result in delays outside of the company’s control and impact the company’s ability to satisfy customary closing requirements,” Canopy ( CGC ) said, adding that as a result, it was forced to end the subscription agreements on Jan.

12. The company reassured investors about its liquidity and said it remains on track to meet closing requirements in the next few weeks. Per the terms of the previously announced private placement, CGC was expected to offer ~7.0M shares and warrants at $4.29 apiece in a transaction anticipated to close on Jan.

10. More on Canopy Growth Avoid Canopy Growth After Failed Equity Sale Canopy Growth: Reverse Split Won't Help Canopy Growth Corporation (CGC) Q2 2024 Earnings Call Transcript Biggest stock movers today: Tilray Brands, Juniper Networks, Canopy Growth, and more Canopy Growth announces $30 million private placement.