Canopy Growth strikes deal with lenders to reduce debt by $333 million over next six months

Canadian cannabis company Canopy Growth Corp. said Friday it has reached agreements with its lenders that will delever its balance sheet by C$437 million over the next six months.The once-high-flying company, with a $4 billion investment from Corona beer brewer Constellation Brands Inc. STZ, +0.74% back in 2018, has fallen on hard times and issued a “going concern” warning last month. Its market cap has fallen to about $380 million, according to FactSet data.

That strategy depends on the U.S. lifting the federal ban on cannabis, which remains elusive amid Republican opposition. To illustrate just how grim things are, Eight Capital analyst Ty Collin cut his price target for Canopy to zero last week from C$1.75 previously and said it’s no longer appropriate to view the company as a going concern.

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