Canopy Growth Files DEFA14A, CEO Klein Interview Transcript Included

TL;DR

**Canopy Growth just dropped a DEFA14A with their CEO's interview, giving investors fresh insights.**

AI Summary

Canopy Growth Corporation filed a DEFA14A on February 20, 2024, to provide definitive additional materials related to a proxy statement. The filing includes a transcript of an interview with CEO David Klein by Shadd Dales, indicating ongoing communication with shareholders regarding company strategy and performance. This filing, under SEC File Number 001-38496, is part of the company's regular disclosure requirements.

Why It Matters

This filing provides shareholders with additional information, including direct insights from CEO David Klein, which can influence investment decisions and understanding of the company's direction.

Risk Assessment

Risk Level: low — This is a routine informational filing (DEFA14A) and does not inherently indicate new or elevated risks.

Key Numbers

• 001-38496 — SEC File Number (Identifies the specific registration statement for Canopy Growth Corp.)
• 20240220 — Filed As Of Date (Indicates the official filing date of the DEFA14A.)

Key Players & Entities

• Canopy Growth Corp (company) — Registrant
• David Klein (person) — CEO of Canopy Growth Corporation
• Shadd Dales (person) — Interviewer
• February 20, 2024 (date) — Filing date
• 001-38496 (dollar_amount) — SEC File Number

FAQ

Key Financial Figures

• $9 million — then have um we that converts to about $9 million of adjusted EBITDA loss which everybody
• $34 Million — s about in the Cannabis space and about $34 Million worth of cash usage in the quarter righ
• $600 Million — we finished the quarter right around $600 Million worth of Deb debt um Canadian these are
• $400 Million — n March which should leave us just over $400 Million worth of uh worth of Canadian dollar de
• $400 million — e you said uh getting that debt down to $400 million but if youre in front of a group of inv
• $383 M — ance on its senior secured term loan to $383 MM, a reduction of $367 MM from the origi
• $367 M — ed term loan to $383 MM, a reduction of $367 MM from the original loan amount. Shadd
• $5 billion — tion came into canopy and deployed that $5 billion that was the shot heard around the Cann
• $7,000 — y where where price to consumer is like $7,000 a pound which is like 15 bucks a gram r
• $5 — d brand right were selling that for for $5 Canadian a gram so call it four Bucks v
• $15 — ian a gram so call it four Bucks versus $15 now this is price to consumer not whole

Filing Documents

• d794286ddefa14a.htm (DEFA14A) — 49KB
• 0001193125-24-038754.txt ( ) — 50KB

From the Filing

DEFA14A UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No.) Filed by the Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material under 240.14a-12 CANOPY GROWTH CORPORATION (Name of Registrant as Specified in Its Charter) N/A (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check all boxes that apply): No fee required Fee paid previously with preliminary materials. Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11. The following is a transcript of an interview of Canopy Growth Corporation CEO David Klein by Shadd Dales of the The Dales Report, and Anthony Varrell, a Millenial Investor, on February 15, 2024. Shadd Dales: Welcome to our latest TDR cannabis exclusive a lot of you have reached out to us over the past week to find out when our second podcast will be with CEO David Klein to talk about some of the questions that you have pertaining to the company well here we are and lets welcome him in the CEO of canopy growth which trades on the NASDAQ under the ticker symbol cgc David good to see you hope youre having a good week yeah good to see you as well thanks for having me. Anthony Varrell good to see you a lot of great feedback and a lot of feedback I should say uh pertaining to our first podcast but you know I think well quickly recap um whats the sentiment been like in the last week from a lot of people that youve heard just with regards to your latest earnings and some of the feedback that youve received David Klein: yes so you know again I think I think the things that are resonating with with uh investors is that we have attractive gross margins now our top line is growing it it feels like were were you know were were doing all the right things and heading in the right direction theres still uh admittedly a little bit of a wait and see attitude out there in terms of you know how does this progress over time but I think theres some good momentum Shadd Dales: yeah um well I want to dive into this and I know theres been a lot of feedback uh from our viewers asking questions so well get into that talking about financing and balance sheets so uh as we dive deeper into the earnings point on this episode and start off with the cash position it sits right now the company currently has 142 million dollar of cash and cash equivalence at the end of 2023 a total net loss of 216 million last quarter so how should investors be interpreting the math here and are you expecting to raise capital in the future again David Klein: yes so let me let me just walk through a little bit of the math here right so okay um our actual loss from operations was about 60 million and the difference between 216 and 60 was just the accounting write down of our US Investments and we all know uh fourth calendar quarter of last year was not good for for the US cannabis space right so so were so we start at 60 we then have um we that converts to about $9 million of adjusted EBITDA loss which everybody talks about in the Cannabis space and about $34 Million worth of cash usage in the quarter right so so thats thats uh thats what were thats what were working against as we as we look to put the company on on the right path now from a debt perspective we finished the quarter right around $600 Million worth of Deb debt um Canadian these are all Canadian numbers by the way we previously said were going to pay back were going to equitize about 100 million in a deal with Constellation which will happen at the same time they go into exchangeable shares uh we have pay Downs planned in the in the fourth quarter that are already underway our fourth quarter which ends in March which should leave us just over $400 Million worth of uh worth of Canadian dollar debt uh at the end of the the fiscal year Anthony Varrell: um when youre looking at the burn down on doll of debt this year sorry say that again when youre looking at the burn the true number is 34 million as far as the the cash burn goes and the plan is to reduce the debt by at least a factor of 20% here um in 2024 David Klein: correct and then and then you know that the debt that remains has a maturity in 2026 um and like when you break that down guys theres like a theres a certain amount of debt that we believe the business can sustain right uh theres also uh a now that now that our now that were generating positive positive and attractive gross margins now we can lean into the growth and we and so theres a certain amount o

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View this DEFA14A filing on SEC EDGAR