11:23 AM EDT, 05/03/2024 (MT Newswires) -- Canopy Growth ( CGC ) said Friday it expects to get $50 million in proceeds from a debt deal with an undisclosed institutional investor.

The company will exchange about CA$27.5 million ($20.1 million) of existing debt maturing in September 2025 for a new senior unsecured convertible debenture maturing in five years.

The investor will acquire a convertible debenture in an aggregate principal amount of CA$96.4 million, while Canopy Growth ( CGC ) will issue 3.35 million common share purchase warrants to the investor on the closing date. Each warrant will be exercisable at CA$16.18 a share, the company said.

Canopy said the convertible debenture will pay 7.5% per annum in interest and can be converted at CA$14.38 per share.

Canopy Growth ( CGC ) expects the offering to close during the week of May 6. It plans to use the net proceeds for working capital and general corporate purposes.

Shares of the company rose 0.4% in recent trading Friday, paring earlier gains.

Price: 10.38, Change: +0.04, Percent Change: +0.39