Canopy Growth Makes a $59 Million Loan

: CGC | Canopy Growth Corporation News, Ratings, and Charts

CGC – Canopy Growth (CGC) recently announced about 500 job cuts and $700-800 million worth of write-downs coming next quarter.

During these volatile times in the market, capital can be scarce. Companies with weak balance sheets need to do everything and anything to preserve their capital and cut costs.

Canopy Growth (CGC) recently announced about 500 job cuts and $700-800 million worth of write-downs coming next quarter. Although this was an adjustment to the current market conditions, the company still remains on track and focused on their long term objectives. Recently they announced that they would be extending a loan to one of their strategic partners and this could be the perfect timing for them.

CGC announced on Wednesday that they have entered into a loan financing arrangement With TerrAscend Canada.  The loan is for C$80.5 million and will be secured to debentures. TerrAscend has issued 17,808,975 common share purchase warrants to the Company in addition to the loan.

CGC originally co-invested into TerrAscend in November 2017 when the cannabis market was just heating up. About a year later in October of 2018 Canopy Growth announced the completion of a restructuring transaction with TerrAscend. These two companies have a multi-year history of working together as CGC continues to invest in all aspects of the cannabis sector. TerrAscend provides quality products, brands, and services to the global cannabinoid market. As the first North American Operator (NAO), with scale operations in both Canada and the US, the Company participates in the medical and legal adult-use market across Canada and in several US states where cannabis has been legalized for therapeutic or adult use.

David Klien CEO of CGC had some positive remarks regarding the recent news, “TerrAscend Canada has proven its ability to thrive and this loan is a strong signal that Canopy Growth is confident in their ability to execute over the long term. We are encouraged by TerrAscend’s strong performance and we view the team’s experience as an important contributor to its continued success.”

Jason Ackerman, Executive Chairman, and Interim CEO at TerrAscend was excited about the news and said that “We are pleased to receive this loan from Canopy Growth as we enter into the next stage of TerrAscend’s growth and expansion. We look forward to continuing to work with Canopy Growth as new opportunities emerge and the regulatory landscape evolves.”

TerrAscend Canada plans to use the funds for general corporate purposes along with funding its Canadian operations. This goes to show that during these difficult times, cash is a very important asset to most businesses. Canopy Growth, with its billion-dollar war chest from Constellation Brands, is able to support and invest in its strategic partners as they assemble a solid foundation for the future.

Compared to other cannabis companies, we favor Canopy Growth during these times in the market for the simple fact that they have what it takes to weather the storm. If valuations continue to drop, CGC has the ability to make more acquisitions in the cannabis space and continue to support and invest in its strategic partners. We feel that CGC still has a long way to go when it comes to profitability but investors in the company should be able to sleep well at night knowing that cash will not be a near term issue.


About the Author: Aaron Missere


Aaron is an experienced investor who is also the CEO of Departures Capital. His primary focus is on the cannabis industry. He also hosts a weekly show on YouTube about marijuana stocks. Learn more about Aaron’s background, along with links to his most recent articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CGCGet RatingGet RatingGet Rating
OGIGet RatingGet RatingGet Rating
GWPHGet RatingGet RatingGet Rating
CRONGet RatingGet RatingGet Rating
APHAGet RatingGet RatingGet Rating
TLRYGet RatingGet RatingGet Rating
CTSTGet RatingGet RatingGet Rating
MJGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Canopy Growth Corporation (CGC) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CGC News