Canopy Growth’s stock slides 10% after it announces private placement of up to $50 million to boost liquidity

Canopy Growth Corp.
CGC,
-15.56%

WEED,
-14.75%
said Monday it has entered agreements with institutional investors for a private placement of up to $50 million as it again moves to boost liquidity. The Canadian cannabis company said it is offering 22.9 million units priced at $1.09 for gross proceeds of about $25 million. Investors have an over-allotment option for up to additional 22.9 million units at the same price at any time on or before Nov. 2. Each unit is equal to one common share plus a warrant to acquire an additional share at a price equal to $1.35 for a period of five years. The stock was down 10% premarket, after adding about 12% on Friday after announcing it would move to file bankruptcy for its BioSteel sports drink unit  and narrow the gap for the company’s adjusted losses moving forward.