Canadian marijuana producer Canopy Growth filed a preliminary short-form base shelf prospectus enabling the company to raise up to $2 billion (2.5 billion Canadian dollars) in one or more series or issuances of securities over a 25-month period.
It is believed to be the largest shelf prospectus by a cannabis company.
It signals the company wants to replenish its cash reserves.
Canopy, whose coffers held as much as CA$4.1 billion at the end of 2018, was down to CA$825 million in cash as of 2020.
The filing would clear the way for Canopy to issue common shares, subscription receipts, warrants and units for a 25-month period “or any combination thereof in one or more series or issuances up to an aggregate total offering price of US$2,000,000,000,” according to the filing.
Canopy said it had negative cash flow for both the fiscal year ended March 31, 2020, and the nine-month period ended Dec. 31, 2020.
The preliminary short-form base prospectus is available here.
Canopy’s shares trade as CGC on the Nasdaq and WEED on the Toronto Stock Exchange.