Canopy Growth (TSX:CGC) has announced that it has renewed the engagement agreement with XIB Consulting, originally announced on April 7, 2016.
As quoted in the press release:
Under the agreement, XIB will continue to assist Canopy Growth with corporate development initiatives including, but not limited to, acquisitions, strategic networking and market awareness.
Subject to the approval of the TSX Exchange (the “TSX”) and pursuant to the agreement, which has a term of three months, Canopy Growth shall satisfy the engagement fee payable to XIB by issuing 18,899 of Common Shares in the capital of the Corporation to XIB, which may be credited against incremental success fees payable under certain circumstances. Per the terms of the renewal agreement, the share issue price was determined using a 5-day Volume Weighted Average Price calculation based the 5 days prior to the execution date of the renewal agreement. The renewal agreement was executed on September 29, 2016. The Common Shares will be issued at a price of $ 3.97 per share.
The appointment of XIB as a consultant of the Corporation and the corresponding share issuance remains subject to standard regulatory acceptance of applicable filings with the TSX.