Client Relationship
Canopy Growth Corporation

Canopy
Growth

Canopy Growth is a world-leading diversified cannabis and cannabinoid-based consumer product company. HudsonWest advised Canopy Growth across multiple equity-linked transactions spanning 2022 and 2023, helping the company manage a complex convertible maturity through a combination of equitizations and a bespoke refinancing.

2
Mandates
completed
C$467mm
Notes equitized
& refinanced
78%
Outstanding convertibles
addressed
Transaction History

A creative solution
for a complex maturity.

June
2022
1st mandate
Convertible Note Equitization
C$262MM Equitization of 4.25% Convertible Senior Notes due 2023

With the notes approaching current status and Canopy’s stock having fallen well below the conversion price, HudsonWest designed an equitization of ~44% of the outstanding notes at a discount to par with a floor price — saving over C$11MM in annual interest expense and moving Canopy from a net debt to a net cash position.

C$262mm
Case Study
June & July
2023
2nd mandate
Equitization & Maturity Refinancing
~C$205.5MM Two-Part Transaction: Equitization + Maturity Refinancing

With the balance of the C$237MM maturity approaching, HudsonWest helped execute a two-part solution: a C$12.5MM equitization in June 2023, followed by a C$193MM refinancing composed of cash, common shares and a new zero-coupon convertible note. Despite significant regulatory, legal and contractual constraints, Canopy retained C$92MM in cash it otherwise would have owed at maturity.

C$205mm
Case Study
The Relationship

Navigating complexity
with creative solutions

Canopy Growth engaged HudsonWest in 2022 as it faced a challenging set of circumstances: a C$600MM convertible maturity approaching, a stock price well below the original conversion price and meaningful regulatory and structural constraints on available options.

In June 2022, HudsonWest designed an innovative equitization of ~44% of the outstanding notes at a discount to par, with a floor price to protect against stock price volatility. The transaction saved over C$11MM in annual interest expense and meaningfully strengthened Canopy’s balance sheet.

A year later, with the full maturity approaching, HudsonWest returned with a two-part solution that allowed Canopy to retain C$92MM in cash it would otherwise have owed — navigating a complex web of regulatory, legal and contractual constraints to achieve a constructive outcome.

Client Since
2022
Total Mandates
2
Transaction Types
Equitization,
Maturity Refinancing
Interest Expense Saved
C$11MM+
per year (2022 tx)
Cash Preserved
C$92MM retained
at 2023 maturity
Sector
Cannabis &
Consumer Products
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