Canopy Growth Corp. CGC, -3.50% WEED, -18.49% fell 17% in premarket trading Thursday after the company said it reached an agreement with Constellation Brands Inc . STZ, +1.36% to convert about $198 million of convertible debt into equity. Constellation agreed to acquire between 21.93 million or 5.4% of Canopy shares and 30.7 million shares or 7.6% of Canopy shares that will be converted from debt. Share prices will range from $2.50 to $3.50 per share. Canopy Growth CFO Judy Hong said the transaction will address a “significant portion” of its soon-to-maturity convertible debt and help the company de-leverage its balance sheet and reduce interest payments by more than C$10.9 (8, 44 million dollars) each year. “These actions are critical as we address broader economic issues and will allow us to continue to invest in the most potential areas of our business to drive future growth,” Hong said.
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