DISTRESSED DAILY: Canopy Growth Swaps Converts After Stock Drop

Canopy Growth Corp. is struggling to keep up with the changing cannabis industry, and is hoping its latest financial maneuvering will help it ease its debt load.

The company agreed to swap around C$263 million ($202 million) of its C$600 million of convertible bonds due next year for stock and cash at far below planned conversion prices, a move Fitch Ratings and S&P Global Ratings deem tantamount to a default. The notes were originally eligible for conversion at around C$48.17 a share, while Canopy’s stock closed Wednesday at C$2.65.

Although the Canadian cannabis market grew by 50% in 2021, Canopy’s ...