Canadian cannabis giant Canopy Growth announced plans to launch a new $35 million private fundraise as it continues efforts to reduce its debt obligations.

In what the company described as an ‘upsizing’, coming just days after it canceled a $30 million raise, Canopy said yesterday (January 18) that it had entered into subscription agreements ‘with certain institutional investors’.

Its offering will include 8.2 million units at a price of US$4.29 each, seeing it raise aggregate gross proceeds of ‘approximately’ $35 million.

Each unit will consist of one common share and either a Series A or Series B common share purchase warrant, entitling the holder to acquire one common share from the company at a price equal to $4.83. The placing is expected to close today (January 19).

According to the company, the fundraise will provide working capital for general purposes but is primarily expected to be used to ‘pay down debt, which is consistent with the Company’s strategy for overall debt reduction’.

In its latest financial report from November, Canopy said that it managed to reduce its overall debt from $364 million to $681 million in Q2 FY2024, seeing its total debt reduction top $1 billion since the beginning of FY2023.