Canopy Growth Corporation Canopy Growth Corporation

Canopy Growth Corporation completes bought deal financing for $60 million

SMITHS FALLS, ON, Dec. 22, 2016 /CNW/ – Canopy Growth Corporation (TSX: CGC) (“Canopy Growth” or the “Company”) announced that it has closed its previously announced short form prospectus offering on a bought deal basis.  A total of 5,662,000 common shares in the capital of the Company (the “Shares”) were sold at a price of $10.60 per Share, for aggregate gross proceeds of $60,017,200 (the “Offering”).  The Offering was underwritten by a syndicate of underwriters led by GMP Securities L.P. (“GMP”) and Dundee Capital Partners (“Dundee”), and including Cormark Securities Inc., PI Financial Corp., and Canaccord Genuity Corp. (collectively with GMP and Dundee, the “Underwriters”).

The Company intends to use the proceeds from the Offering primarily for potential real estate acquisitions and fit-up of growing operations at such locations. In the event such potential acquisitions are not completed, a majority of the funds will be used to expand capacity at the Company’s existing sites over the next 12 months. Additionally, the Company expects to incur international development expenditures of approximately $2,000,000 primarily to further explore and develop international market opportunities where federally legal to do so. The balance of the net proceeds will be used for general working capital purposes, such as potential acquisitions for both capacity and brand augmentation and related integration, and developing new product offerings. The Company may reallocate these funds as market and regulatory indicators warrant in light of the anticipated legalization of a national recreational cannabis market and the ACMPR.

The Shares were offered by way of a short form prospectus in (i) each of the provinces of Canada, except Quebec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions; (ii) the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended; and (iii) in jurisdictions outside of Canada and the United States, as agreed to between the Company and the Underwriters, in each case in accordance with all applicable laws provided that no prospectus, registration statement or similar document was required to be filed in such jurisdiction and the Company will not be subject to any continuous disclosure requirements in such jurisdiction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Separately, Cowen and Company, LLC was engaged as financial advisor to the Company to provide financial advisory services in the United States.

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