Canopy Growth Corp (NASDAQ:CGC) shares are trading lower Thursday after the company announced a new at-the-market equity offering program.
What Happened: Canopy Growth has established an at-the-market equity program that allows the company to issue and sell up to $250 million worth of its common stock from time to time in concurrent public offerings in the United States and Canada.
Any common shares sold in the equity program will be sold in transactions made directly on the Nasdaq or the TSX. The timing of the sales will be determined at the company's sole discretion.
Canopy Growth said it intends to use any net proceeds for investments in businesses, to fund any potential future acquisitions and for working capital and general corporate purposes, which may include debt repayments.
How To Buy CGC Stock
By now you're likely curious about how to participate in the market for Canopy Growth – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. In the case of Canopy Growth, which is trading at $7.45 as of publishing time, $100 would buy you 13.42 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
CGC Price Action: Canopy Growth shares were down 8.19% at $7.17 at the time of writing Thursday, according to Benzinga Pro.
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