Canopy Growth pays down $100M in debt, extends loan maturity | Where to buy Skittles Moonrock online

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Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) prepaid $100 million of its term loan at a discount, the company said Thursday.

The Canadian cannabis company said it paid $97.5 million to reduce the loan by $100 million, a move expected to save about $14 million annually in interest expenses. The prepayment is part of a loan amendment agreed upon in August, which also extended the loan’s maturity to December 2026.

Judy Hong, Canopy’s chief financial officer, said the action reflects the company’s “ongoing commitment to reducing cash burn and strengthening our capital structure.”

The debt reduction comes as the company continues to recover from financial headwinds over the past few years. In Canopy’s most recent financial filings, for the quarter that ended on June 30, revenue fell 13% year-over-year to C$75 million. Canopy also posted a net loss of C$127 million, which was much wider than the C$38 million loss reported for the same period last year.

The company has an option to make another $100 million prepayment by March 31, 2025, which would further extend the loan maturity to September 2027.

This $100 million (approximately C$137 million, according to latest exchange rates) prepayment, Canopy’s actively taking down its long-term debt, a challenge facing many in the cannabis industry. As of its last reported figures, the company’s long-term debt stood at C$558 million. After the prepayment, the debt would be reduced to around C$420 million, assuming no other changes.

Earlier this month, the company also finalized the acquisition of U.S. edibles maker Wana Brands through its Canopy USA subsidiary, with hopes to expand its footprint in the American market.