Will Constellation Brands Buy Canopy Growth? This Analyst Discusses Optionality Post Debt Transactions

Canopy Growth Corporation (NASDAQ: CGC ) entered into a privately negotiated exchange agreement last week with a holder of the company's outstanding 4.25% unsecured senior notes due in 2023, to secure roughly CA$255.4 million ($198 million) aggregate principal amount of the notes from the noteholders in exchange for common shares of the company and approximately CA$3 million ($2.35 million) in cash for accrued and unpaid interest. The company’s stock plunged 21.7%, following the announcement. On Friday, the Canadian cannabis giant entered into an additional agreement with a holder of the company's outstanding 4.25% unsecured senior notes to secure roughly $5.7 million in financing. The followed Canopy’s expansion of its cannabis beverage portfolio by launching its new Just Hits Different brand campaign. Year-to-date, the stock declined by 71.72%. The Analyst Cantor Fitzgerald’s Pablo Zuanic lowered the price target on Canopy’s stock to CA$3.75 ... Full story available on Benzinga.com