Canopy Growth has struck redemption agreements with its lenders to reduce debt, including paying cash and converting notes into shares.

The beleaguered cannabis company announced the moves Friday in a news release, saying they aim to reduce debt by approximately $437 million over the next two quarters, and lower its annual interest costs by between $20 million and $30 million.

Canopy said $193 million of $225 million in existing notes will be redeemed on July 15 for a mix of common shares and unsecured, non-interest bearing debentures, which holders can convert into common shares.

That action will leave $31.9 million owing under outstanding notes, Canopy said, and save the company $92 million in cash.

The company said it will also pay $93 million in cash to reduce $100 million in principal indebtedness, and direct proceeds from some asset sales to reduce its debt.

Canopy said its moves “continue to ensure that Canopy Growth has a sustainable business platform, and remains positioned to be a leader in the $50 billion North American cannabis market.”

Judy Hong, Canopy Growth’s chief financial officer, said the company is “pleased to have worked constructively with our lenders to reach these agreements” that will help the company make “meaningful reductions in its overall debt.”

“We believe these latest milestones, in addition to actions Canopy Growth has taken to strengthen its balance sheet and its continued execution on the cost reduction program, will provide investors and all of our stakeholders with increased confidence in our path to long term value creation,” she said.

Canopy is undergoing an “organization transformation” to cut its spending as it struggles in Canada’s oversaturated cannabis market. Earlier this year, the company announced plans to lay off 800 workers – or one-third of its workforce – in an attempt to regain profitability.