SMITHS FALLS, Ont. — Canopy Growth Corp. has signed two deals to exchange C$262.7 million of its debt for shares and a little bit of cash.

Under the agreements with a limited number of noteholders, the cannabis company will acquire the 4.25 per cent unsecured convertible senior notes due in 2023 for about C$259.9 million in shares plus approximately C$3.1 million in cash for accrued and unpaid interest.

The largest of these agreements accounts for C$255.4 million of the debt, while the other announced Thursday afternoon is for $7.25 million of debt and cash.

The price used to value the shares will be the volume-weighted average trading price on the Nasdaq Global Select Market for the 10 consecutive trading days beginning Thursday, subject to a floor price of US$2.50 and a maximum of US$3.50 per share.

Constellation Brands Inc., through its wholly owned subsidiary Greenstar Canada Investment Limited Partnership, has agreed to swap half of the C$200 million in notes it holds under the larger deal.

The company, which is already Canopy's largest shareholder, will receive a minimum of 21.9 million Canopy shares based on the floor price and a maximum of 30.7 million shares.

Constellation currently holds nearly 142.3 million Canopy shares, representing a 35.3 per cent stake in the company.

Canopy's shares plunged 18.5 per cent to $3.66 Thursday on the Toronto Stock Exchange following the announcement of the largest note offering.

This report by The Canadian Press was first published June 30, 2022.

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