SMITHS FALLS, ON - Canopy Growth (NASDAQ:CGC) Corporation (TSX: WEED) (Nasdaq: CGC), a prominent cannabis company, announced the establishment of an at-the-market equity program (the "ATM Program") to potentially issue and sell up to $250 million worth of common shares. The sales will take place directly on the Nasdaq or the Toronto Stock Exchange (TSX), as well as other available U.S. or Canadian markets.
The ATM Program is designed to provide the company with capital by distributing common shares at prevailing market prices. The timing and amount of any sales will be at Canopy Growth's discretion and subject to market conditions. The program is set to run until July 5, 2026, or until all shares are sold or regulatory changes occur, whichever comes first.
Proceeds from the ATM Program are intended for investment in business ventures, potential acquisitions, working capital, and general corporate purposes, including the repayment of debt, which the company has significantly reduced over the past 18 months.
The offering is made under a distribution agreement with BMO Nesbitt Burns Inc. and BMO Capital Markets Corp., serving as Canadian and U.S. agents respectively. Documents related to the ATM Program, including the prospectus supplements and the equity distribution agreement, are available on the SEDAR+ and SEC websites.
This news release does not constitute an offer to sell or a solicitation to buy the common shares, and no sales will occur in jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Canopy Growth is a global cannabis company, known for its commitment to consumer satisfaction and innovation in the cannabis market. It holds a portfolio of brands such as Doja, 7ACRES, Tweed, and Deep Space, and has a stake in Canopy USA, which operates several U.S.-based cannabis companies.
The information in this article is based on a press release statement from Canopy Growth Corporation.
In other recent news, Canopy Growth Corporation has been making significant strides. The company recently finalized its acquisition of Jetty and two Wana Brands business units, a move that aligns with its strategy to strengthen its presence in the cannabis market. Additionally, the company exercised an option to acquire a significant portion of Acreage Holdings (OTC:ACRGF), Inc.'s debt, further solidifying its financial standing.
Canopy Growth's recent earnings report revealed a 16% year-over-year increase in consolidated net revenue, reaching $73 million in Q4 FY24. Despite EBITDA falling short of estimates, the company remains optimistic about achieving positive adjusted EBITDA in the second half of fiscal year 2025.
In the analyst sphere, Piper Sandler maintained its Underweight rating on Canopy Growth, adjusting future sales forecasts downward. Roth/MKM also weighed in, reducing its price target but maintaining a Buy rating. Both firms' analyses indicate a cautious yet hopeful outlook for Canopy Growth, potentially benefiting from the federal rescheduling of cannabis.
These recent developments underscore Canopy Growth's commitment to product innovation and social equity within the cannabis sector, as well as its strategic focus on strengthening its financial position and expanding its market presence.
InvestingPro Insights
Canopy Growth Corporation's recent announcement about its ATM Program comes amidst a challenging financial landscape for the company. According to InvestingPro data, Canopy Growth has a market capitalization of $593.73 million, reflecting its current position in the market.
The company's financial health is further highlighted by its price to earnings (P/E) ratio, which stands at -1.69, indicating that investors are not expecting earnings in the near term. This is underscored by an adjusted P/E ratio of -1.9 for the last twelve months as of Q4 2024, suggesting that profitability remains a concern.
InvestingPro Tips reveal that Canopy Growth is quickly burning through cash, which aligns with the need for the ATM Program to raise additional funds. Furthermore, the stock has experienced significant price volatility, with a notable decline over the last week and month, but interestingly, it has had a strong return over the last three months. This volatility is something potential investors should be mindful of.
Analysts on InvestingPro have noted that they do not anticipate the company will be profitable this year, and they expect a sales decline in the current year, which could be a red flag for those considering investment.
For readers interested in a deeper analysis of Canopy Growth Corporation, there are 9 additional InvestingPro Tips available that could provide further guidance on the stock's performance and outlook. To explore these insights, visit InvestingPro's dedicated section for CGC. Additionally, for those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, allowing for even more comprehensive investment research and data.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.