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Canopy Growth Stock Jumps 50% After it Moves to Pay Down Debt

The embattled cannabis giant announced this week that it was undertaking several moves to improve its liquidity and pay down its debt.

After hitting a 52-week low on Friday, falling 11%, Canopy’s shares jumped more than 50% in the US on Monday following the news, Motley Fool reported.

According to a press release published on Monday, Canopy has now completed all conversions ‘pursuant to the $100m senior unsecured convertible debentures, sold to an institutional investor in February 2023’.

As part of an ongoing business transformation plan the strengthen its financial position, Canopy also said it has paid down $188m (25%) of the senior secured term loan at $0.93 per dollar of debt.

READ MORE: California Courts Have Sealed 90 Percent Of Eligible Cannabis

Furthermore, it has generated C$81m in cash proceeds over the most recent quarter following the sale of five facilities, and has additional agreements in place to generate C$150m in total proceeds by September 2023.

“Today’s announcement underscores our continued commitment to deleveraging and strengthening Canopy Growth’s financial position,” stated Judy Hong, CFO, Canopy Growth.

“When paired with our ongoing cost reduction program in Canada which is on track to achieve CA$240-CA$310 million in total savings by March 2024, we are well positioned to achieve improved profitability, enhance financial flexibility, and support long-term value creation.”

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