Canopy Growth Stock Plunges 14% on Discounted Share Offering, Drags Down Cannabis Sector

Canopy Growth announced a discounted private stock placement, causing its shares to fall over 14% and dragging down other cannabis stocks.
Canopy plans to issue 22.9 million new shares at $1.09 each, nearly 20% below recent prices, with options to double the offering.
Investors worry the cheap shares and bundled warrants will dilute existing shareholders. Canopy says it needs the $25-50 million in funds.
Aurora Cannabis and Cresco Labs followed Canopy lower as investors worry they may also need capital and make similar discounted offerings.
A potential Senate vote next week on the SAFE Banking Act could boost cannabis stocks if it passes, allowing banks to work with marijuana companies.

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