Canopy Growth Corporation closed a $150 million term loan led by JGB Management Inc., using the proceeds to repay $101 million of senior secured debt due September 2027, fund working‑capital needs, and support future acquisitions. The company also converted $96.4 million of existing convertible debentures due May 2029 into new $55 million debentures due July 2031, $10.5 million in cash, 9,493,670 common shares and 12,731,481 warrants, thereby pushing all debt maturities to January 2031 and reducing its overall interest burden.
The transaction delivers a robust cash cushion: Canopy will hold roughly C$425 million in cash at closing, exceeding its debt by about C$70 million. The recapitalization not only eliminates a large portion of the company’s short‑term debt but also frees up liquidity that can be deployed toward the pending acquisition of MTL Cannabis Corp. and the expansion of its Tweed brand in the European medical market. By extending maturities to 2031, the company gains a longer runway to achieve sustainable profitability.
Canopy’s need for this recapitalization is rooted in a challenging financial backdrop. The company reported a negative adjusted EBITDA of $9.87 million over the last twelve months, and its Q3 FY2025 earnings showed a 5 % decline in net revenue compared with Q3 FY2024. The negative EBITDA reflects high operating costs and the need for continued investment in product development and market expansion. The new capital structure, with lower interest costs and extended maturities, is designed to stabilize cash flow and support the company’s strategic priorities.
Management emphasized that the transaction is a key step toward “sustained Adjusted EBITDA profitability.” CFO Tom Stewart noted that the “financial runway through 2031” will allow the company to “seize opportunities for growth” while maintaining disciplined cost control. CEO Luc Mongeau highlighted that the recapitalization underpins the company’s focus on disciplined growth, operational excellence, and financial stewardship, particularly in the European medical cannabis market where demand is rising.
The deal positions Canopy Growth to accelerate its MTL acquisition and deepen its presence in high‑margin medical cannabis markets. With a stronger balance sheet and extended debt maturities, the company is better positioned to invest in product innovation, scale operations, and pursue strategic acquisitions that can drive long‑term value creation.
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