Canopy Crumbles on Deal to Swap Debt for Shares, Cash
- Shares sink 19% in its biggest drop since February 2021
- Weed stocks have plunged this year on sluggish US legalization
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Canopy Growth Corp. shares plunged the most since February 2021 after the beleaguered Canadian cannabis company penned a deal to exchange debt for a mix of shares and cash.
The pot producer tumbled 19% to $2.85, an almost five-year low, after announcing the deal, which also boosts main shareholder Constellation Brands Inc.’s stake. Canopy ranks among the biggest losers in the cannabis sector this year as the industry falters under the glacial pace of US legalization.