Company: CGC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000950170-25-015839
Chunk: 101

Company: Canopy Growth Corp
Filing Date: 2025-02-07
Form: 10-Q
Item: Item 1
Chunk 101
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 offset by share issuance costs of $6.6 million.

In addition, $68.3 million was received relating to the Exchange and Subscription Agreement, offset by long-term debt repayments of $148.2 million which related primarily to the First Quarter 2025 Paydowns, Second Quarter 2025 Paydown, and the Third Quarter 2025 Paydown.

Other financing activities resulted in a cash outflow of $19.9 million, which related primarily to: (i) finance lease payments and (ii) share issuance costs, as noted above.

Comparatively, in the nine months ended December 31, 2023, we made repayments of long-term debt in the amount of $480.1 million, which related to the various paydowns of our Credit Facility and settlement of the 4.25% unsecured senior notes due in 2023 (the “Canopy Notes”). Other financing activity cash outflow of $27.2 million related primarily to payments made in connection with terminating the finance lease for the cultivation facility in Mirabel, Quebec. In addition, debt extinguishment and issuance costs, and share issue costs contributed to the cash outflow. The cash outflows were offset by proceeds from the issuance of common shares.

Free Cash Flow (Non-GAAP Measure)

Free cash flow is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that free cash flow presents meaningful information regarding the amount of cash flow required to maintain and organically expand our business, and that the free cash flow measure provides meaningful information regarding our liquidity requirements.

The following table presents free cash flows for the three and nine months ended December 31, 2024, and 2023:

    Three months ended December 31,

    Nine months ended December 31,

    (in thousands of Canadian dollars)
     
    2024

    2023

    2024

    2023

    Net cash used in operating activities - continuing   operations
     
    $
    (26,966
    )
     
    $
    (33,348
    )
     
    $
    (132,598
    )
     
    $
    (205,961
    )

    Purchases of and deposits on property, plant   and equipment - continuing operations

    (1,215
    )

    (564
    )

    (7,724