Aurora Cannabis Announces $50 Million Deal

Canadian-based Aurora Cannabis Inc.  (ACBFF) announced that it entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. to purchase, on a bought deal basis, 16,700,000 units of the Company at a price of $3.00 per Unit for aggregate gross proceeds to Aurora of $50,100,000. Proceeds from the offering will be used for expansion both domestically and internationally as well as general working capital needs. The offering is expected to close on or about November 2, 2017.

“This financing ensures that we have the financial horsepower we need to keep going at full throttle and continue seizing and capitalizing on attractive growth opportunities in Canada and around the world,” said Terry Booth, CEO. “With Aurora’s excellent balance sheet and what we believe is the strongest cash position in the industry, we are ideally positioned to further accelerate our aggressive growth strategy, further expand production capacity, and enter multiple new international markets. Aurora will continue to push the pace, with agility, innovation, and disciplined execution, and set the benchmark as a globally dominant cannabis company.”

Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations. The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, known as “Aurora Mountain” and is currently constructing a second 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport, and has acquired, and is undertaking completion of a third 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’s West Island.

Each unit that is offered in the deal will be comprised of one common share of the Aurora and one common share purchase warrant. The warrants will be exercisable to acquire one common share for a period of 3 years following the closing date of the offering at an exercise price of $4.00 per Warrant Share, subject to adjustment in certain events.

Aurora has also granted Canaccord an option to purchase up to 2,505,000 additional units of Aurora on the same terms as the offering. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be $57,615,000.

Aurora’s stock price has risen over 7% for the past year and was lately trading at $2.51.

 

Debra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 4 days

Hut Hut High – Michigan’s Marijuana Tailgate Party ⁦@SkymintCannabis⁩

@GreenMarketRpt – 5 days

10 Things Not To Miss At The MJ Biz Conference ⁦@MJBizDaily⁩

@GreenMarketRpt – 5 days

‘Haul’ Of Flowers Is The B2B Expo For A Bountiful Harvest. ⁦@BritGeo⁩ ⁦@HallofFlowers_⁩

Back to Top

Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.