Canopy Growth Corp (NASDAQ:CGC) shares are trading volatile. The company on Tuesday announced that it strengthened its balance sheet with early prepayment of its senior secured term loan.

What Happened: Canopy said it made an optional early prepayment of $100 million under its senior secured term loan. The prepayment results in interest expense savings of approximately $13 million on an annualized basis.

"Canopy has further improved its balance sheet with this early prepayment by reducing our overall debt position as well as lowering annual interest costs," said Judy Hong, CFO of Canopy Growth.

Canopy said it extended the maturity date of the term loan by making the prepayment by March 31. The company now has no material debt obligation until September 2027.

Cannabis stocks rallied at the end of last week after former Rep. Matt Gaetz (R-Fla.), who was President Donald Trump's first pick for attorney general before he withdrew from consideration, suggested that meaningful cannabis reform is "on the horizon."

Reports indicated that Gaetz expressed confidence Trump will move cannabis from Schedule I to Schedule III of the Controlled Substances Act, which "won't solve every problem," but is a "necessary step" for cannabis reform, he said.

Related Link: Canopy Growth's Future Hinges On US Cannabis Regulatory Shifts, Says Analyst, Issuing 'Neutral' Rating

CGC Price Action: Canopy Growth shares were down 0.44% at 90 cents at the time of publication Tuesday, according to Benzinga Pro.

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