CGC - Why Canopy Growth Stock Crashed 10% on Thursday
2024-06-06 12:41:48 ET
Canadian cannabis company Canopy Growth (NASDAQ: CGC) tumbled 9.8% through 11:55 a.m. ET Thursday after announcing plans to create and sell $250 million new Canopy shares at whatever the market price is when the sales occur.
Precisely when such sales will occur "will be determined in the Company's sole discretion." But management might want to wait a bit before selling -- because if it sells right now, it'll be getting 8% less money than if it had been able to sell those shares yesterday.
As Canopy Growth explained, it needs the extra cash to fund "potential future acquisitions," to pay down debt, and also "for working capital and general corporate purposes."
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Why Canopy Growth Stock Crashed 10% on Thursday