Canopy Growth (TSXV:CGC) has closed its previously announced bought-deal financing for gross proceeds of $11,505,750.
As quoted in the press release:
The Company intends to use the net proceeds from the Offering to expand its cannabis oil extraction capacity at Tweed Inc., add grow rooms, invest in information technology and develop international business opportunities. The international development expenditures will relate to developing local strategic partnerships, entering new regulated markets, conducting medical research, and investing directly in such partnerships. In all cases, the Company will remain in compliance with its regulatory undertakings. There is no guarantee that approval of the TSX Venture Exchange (the “TSXV”) will be obtained with respect to such activities and as such, the proceeds allocated for international development may be used for other purposes.
The balance of the net proceeds will be used for general working capital purposes including salaries, general maintenance, utilities, costs of compliance with Health Canada and other regulatory compliance and for the Company’s costs associated with client acquisition.
While the Company currently anticipates that it will use the net proceeds of the Offering received by it as set forth above, the Company may re-allocate the net proceeds of the Offering from time to time, having consideration to its strategy relative to the market and other conditions in effect at the applicable time.