Company: CGC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000950170-25-015839
Chunk: 187

Company: Canopy Growth Corp
Filing Date: 2025-02-07
Form: 10-Q
Item: Item 2
Chunk 187
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, net cash flow on loan receivable and other investing activities in the nine months ended December 31, 2023 of $9.2 million primarily related to completing the purchase of the remaining 45% of the common shares of Les Serres Vert Cannabis Inc., in connection with the restructuring actions related to our Canadian cannabis operations initiated in the fourth quarter of fiscal 2023.

56

Financing activities

The cash provided by financing activities in the nine months ended December 31, 2024 was $164.6 million, as compared to cash used of $473.5 million in the nine months ended December 31, 2023. In the nine months ended December 31, 2024, $256.0 million in gross proceeds were received from the sale of common shares as part of the ATM Program and $8.5 million in gross proceeds were received from the exercise of warrants, these amounts were 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