08:15 AM EDT, 05/03/2024 (MT Newswires) -- Canopy Growth ( CGC ) said Friday that it secured US$50 million in financing after entering an exchange and subscription agreement with a single institutional investor.

The cannabis company will swap about $27.5 million of existing debt maturing in September 2025 for a new senior unsecured convertible debenture maturing in five years.

Canopy said it plans to use the new funds for working capital and general corporate purposes.

Under the terms, the investor will acquire a convertible debenture in an aggregate principal amount equal to $96.4 million and Canopy will issue an additional 3,350,430 warrants. Each warrant is exercisable at $16.18 per share for five years.

Canopy said the convertible debenture will pay 7.50% per annum in interest and can be converted at $14.38 per share.

The offering is expected to close during the week of May 6.

The company's share price fell 2% to about US$10 at last look in US pre-market trading after plunging 10% to about $14 in Canada yesterday.