Canopy Growth shares fall after company proposes $250 million stock sale

By Ciara Linnane

Canadian cannabis company's stock has benefited from recent moves to reclassify the plant in the U.S.

Canopy Growth Corp.'s stock slid 4% early Thursday, after the Canadian cannabis company said it has set up a $250 million at-the-market equity offering.

The program will allow the company to issue stock (CGC) (CA:WEED) over time in the U.S. and Canada. Proceeds will be used for working capital and general corporate purposes, as well as for acquisitions and to pay down debt.

The stock remains up 53% in the year to date, boosted by some recent moves by the Biden administration to reclassify the cannabis plant away from being a Schedule I drug that is considered dangerous and addictive, such as heroin, cannabis would become a Schedule III drug, like codeine, which is deemed to be safe for wide use.

Canopy also recently posted a narrower-than-expected quarterly loss on higher revenue and lower expenses.

Also read: Canopy USA exercises options to buy Wana Brands and Jetty Extracts as it moves into the U.S.

-Ciara Linnane

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06-06-24 0843ET

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