Canopy Growth (TSX:CGC) has increased its previously announced bought-deal financing due to strong demand. The financing will be increased from $25 million to roughly $30 million.
As quoted in the press release:
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,233,000 Common Shares at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $4,500,450 in gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be $34,503,450.
The Common Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada (except Quebec). The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes. The Offering is expected to close on August 24, 2016 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.