It’s time for your Daily Hit of cannabis financial news for April 13, 2020.
On The Site
Apparently a cash cushion of $200 million isn’t enough for Aurora Cannabis Inc. (NYSE: ACB) as the company files a new offering sending the share price even lower. The company confirmed that it has $250 million in cash as of March 31, 2020.
On Monday, Aurora said that it intends to file a new prospectus supplement for a renewed ATM (At-The-Market) program, to enable Aurora to raise additional equity capital under which approximately $350 million remains available. The company said it plans to use a portion of this available capacity to provide further balance sheet strength and preserve flexibility given macroeconomic uncertainty caused by COVID-19.
In Other News
Planet 13 Holdings Inc. (OTCQX: PLNHF) announced the termination of its definitive agreement to acquire a cannabis sales license and lease for a dispensary in Santa Ana, California from Newtonian Principles. The Acquisition was terminated due to unmet conditions in the definitive agreement.
“While we are disappointed to be walking away from this expansion, we know that preserving our capital is the right thing to do at this time. We have offered to renegotiate the Acquisition with the Seller to fairly reflect the delays in closing the definitive agreement and the new macro environment,” said Larry Scheffler, Co-CEO of Planet 13. “We take comfort knowing that as one of the few operators with a strong balance sheet and a cashflow positive business, we will have plenty of opportunities to expand the Planet 13 brand in the future.”
HEXO Corp. (NYSE: HEXO) announced the closing of its previously announced underwritten public offering for total gross proceeds to the Company of approximately C$46 million. The Company sold 59,800,000 units of the Company at a price of C$0.77 per Unit under the Offering, including 7,800,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.
International Cannabrands Inc. (CSE: INCB) has unveiled a new name, new logo, and new ticker symbol as part of a rebranding initiative. The company announced that it has commenced doing business as Radiko Holdings, and expects to officially change its corporate name at the Company’s next Annual General Meeting which it expects to hold in June. Additionally, the Company has requested to change its ticker symbol on the Canadian Securities Exchange (the “CSE”) to “RDKO.” The Company anticipates Tuesday, April 14, 2020 will be the effective date of the symbol change on the CSE.
Jumping on the mushroom bandwagon, Global Trac Solutions, Inc. (OTCPink: PSYC) changed its name and corresponding ticker symbol to PSYC in order to align it with their newest business venture objectives. “PSYC has always been at the forefront of innovative technologies, new industries and market perspective. Most recently, we took an underserved industry in dire need of a cashless payment processing solution and successfully delivered it through MTrac, which quickly evolved into the first significant revenue source in our company’s history,” said Vanessa Luna, CEO of Global Trac Solutions.