Canopy Growth Corporation (Canopy Growth) announced the completion of a significant corporate restructuring on April 18, 2024. The restructuring involved the conversion of all common shares held by Greenstar Canada Investment Limited Partnership (Greenstar) and CBG Holdings LLC (CBG Group), subsidiaries of Constellation Brands, Inc. (CBI), into non-voting and non-participating exchangeable shares (Exchangeable Shares). This conversion, known as the CBI Exchange, resulted in the CBG Group no longer holding any common shares. Concurrently, Greenstar converted approximately C$81.2 million of a C$100 million promissory note into 9,111,549 Exchangeable Shares, with the remaining principal and accrued interest being cancelled and forgiven. This transaction, referred to as the Note Exchange, effectively reduced Canopy Growth's overall debt by C$100 million. Following these transactions, the...Show More

Canopy Growth Corporation (Canopy Growth) announced the completion of a significant corporate restructuring on April 18, 2024. The restructuring involved the conversion of all common shares held by Greenstar Canada Investment Limited Partnership (Greenstar) and CBG Holdings LLC (CBG Group), subsidiaries of Constellation Brands, Inc. (CBI), into non-voting and non-participating exchangeable shares (Exchangeable Shares). This conversion, known as the CBI Exchange, resulted in the CBG Group no longer holding any common shares. Concurrently, Greenstar converted approximately C$81.2 million of a C$100 million promissory note into 9,111,549 Exchangeable Shares, with the remaining principal and accrued interest being cancelled and forgiven. This transaction, referred to as the Note Exchange, effectively reduced Canopy Growth's overall debt by C$100 million. Following these transactions, the CBG Group now holds 26,261,474 Exchangeable Shares. Additionally, the Investor Rights Agreement and other commercial arrangements between Canopy Growth and CBI were terminated, leading to the resignation of three CBI nominees from Canopy Growth's Board of Directors. The restructuring is part of Canopy Growth's strategy to advance its position in the U.S. THC market, with the Exchangeable Shares representing a direct interest in Canopy Growth, not its U.S. subsidiary, Canopy USA, LLC.