Canopy Growth Corp

WEED: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 18.00	Jby	Hyp

Canopy: Shares Fall as It Uses Massively Dilutive Equity Issuance to Deal with Maturities

Kristoffer Inton

Jul 14, 2023

On July 14, no-moat Canopy Growth announced a series of transactions to deal with the CAD 468 million due this fiscal year. As we had expected, the company is using a mix of cash and massively dilutive equity issuances to deal with the debt that is set to mature. Our fair value estimates of $0.80 and CAD 0.90 per share remain unchanged. Though this sits above the current share price, we reiterate our Extreme Uncertainty Rating, largely reflecting the risk of value destruction.

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