Aurora Cannabis Inc. (ACBFF) announced that it has set Friday, August 24, 2018, as the record date for the distribution of Australis units. The distribution is in connection with the spin-out of its subsidiary Australis Capital Inc.
“There is massive demand for additional capital to fuel the growth of the U.S. cannabis industry, as well as intense interest among investors to gain access to the American market. We are very pleased to have created this opportunity for Aurora’s shareholders,” said Terry Booth, CEO of Aurora. “The unparalleled access to numerous compelling business opportunities in the U.S., positions Australis well to generate significant shareholder value.”
The distribution was previously announced on August 17. According to the statement, Canadian shareholders as Friday will be eligible to receive the distribution. Non-resident shareholders will be entitled to receive a cash payment net of any applicable withholding taxes following a sale of their respective units in the open market by an independent custodian following the distribution. Aurora expects that distribution and listing of Australis on the Canadian Securities Exchange should be completed by the end of September.
“We are well capitalized through our oversubscribed initial non-brokered private placement to execute on our investment strategy in the cannabis industry,” said Scott Dowty, CEO of Australis. “The undercapitalized and fragmented nature of the U.S. cannabis industry creates ample opportunities for Australis to leverage its access to capital and secure attractively valued assets. Our teams have already begun evaluating several opportunities, and we are looking forward to responsible and sound execution post completion of the Distribution. We look forward to informing our shareholders and the market in this regard.”
Australis Capital plans to identify and invest in U.S. cannabis and real estate assets. Investments may include and are not limited to equity positions and/or debt in both public and private companies, financings in exchange for royalties or other distribution streams, and the possible acquisition of certain entities. Australis’ stringent investment criteria for growth will maximize returns to shareholders while focusing on significant near and mid-term opportunities with a commitment to regulatory requirements, governance, community, and culture.
Terms Of The Distribution
The distribution will be paid on the basis of one unit for every 34 Aurora shares outstanding on the record date. Each unit will consist of one common share and one share purchase warrant of Australis. Each warrant will entitle the holder thereof to acquire one share at an exercise price of $0.25 per Australis share, on or prior to 4:00 p.m. (Eastern Time) on the date that is one year after the distribution.
The statement went on to say that in accordance with applicable securities laws, only Canadian beneficial shareholders can participate in the distribution. Canadian beneficial shareholders or their broker representatives are required to confirm Canadian residency by no later than September 14, 2018, otherwise, they will be deemed to be non-resident shareholders and will receive the net cash proceeds from the sale of their units. Canadian shareholders who hold their shares in Aurora through a brokerage or other account are therefore urged to contact their brokers to ensure that their brokers have confirmed Canadian residency in the manner to be provided by CDS following the record date.