04:44 PM EDT, 07/29/2025 (MT Newswires) -- Canopy Growth ( CGC ) , a global cannabis company, on Tuesday after trade said it entered into an agreement with certain of its lenders to make three prepayments that are expected to reduce the company's Senior Secured Term Loan by US$50 Million by March 31, 2026.

A statement noted the agreement was entered into in order to facilitate the Acreage financing.

Under the terms of the agreement, Canopy Growth ( CGC ) will make the following prepayments under the Term Loan: US$25 million at par on or about July 31, 2025; and US$10 million at par on or prior to December 31, 2025; and US$15 million at par on or prior to March 31, 2026. When completed, the prepayments are expected to reduce the Canopy's interest expense under the Term Loan by approximately US$6.5 million on an annualized basis, the statement said.

"These prepayments reflect our continued focus on strengthening our balance sheet and lowering cash interest expense," said Luc Mongeau, Chief Executive Officer. "Reducing debt is essential to creating the financial flexibility Canopy Growth's ( CGC ) needs to drive sustainable growth now and in the future."

In connection with the agreement, Canopy USA, LLC obtained consent from the company in order for Canopy USA to secure an additional US$22 million in funding for Acreage Holdings and its subsidiaries. The Acreage Financing Consent required the consent of the Lenders.

Canopy shares closed down $0.12 to $1.40 on the Toronto Stock Exchange.