The Globe and Mail reports in its Tuesday, July 5, edition that CIBC Capital Markets analyst John Zamparo says Canopy Growth's deal to exchange about $255-million of convertible debt into equity contains some positive and negative aspects. The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Zamparo says in a note: "The positive is that, without action, Canopy's balance sheet had the potential to become even more leveraged given ongoing cash burn in excess of $100-million a quarter, and transferring about 17 per cent of its total debt into equity provides some future relief. The primary negative takeaway is that this deal contains a clause that the remaining balance (about $345-million) must be redeemed in cash in July, 2023. We believe Canopy may approach its $200-million (U.S.) minimum liquidity covenant by late calendar year 2024." Mr. Zamparo has reaffirmed his "underperformer" recommendation for Canopy, while cutting his share target to $3 from $5. Analysts on average target the shares at $5.98. The Globe reported on May 31 that Mr. Zamparo told investors to stay clear of Canopy Growth. Its shares could then be had for $6.05.