Why Canopy Growth Stock Is Getting Smoked Again Today
Canopy Growth (NASDAQ: CGC) stock is seeing another day of big sell-offs Tuesday. The marijuana company's share price was down 8.5% as of 1 p.m. ET, according to data from S&P Global Market Intelligence.
Canopy published a press release before the market opened today announcing that it would be selling new stock. While selling shares in order to raise funds is nothing new for the company, the company announced plans to sell stock at a price that was significantly below its previous market close.
Canopy announced today that it has entered into an agreement to sell stock to some of its existing institutional investors. Through the agreement, the company will wind up selling more than 6.99 million shares at a price of $4.29 per share. With the stock having closed at a price of $5.04 per share the day before the announcement, the new fundraising initiative will sell stock at a level that comes in significantly below where the stock was trading Monday.
Source Fool.com
