Canadian cannabis giant Aurora Cannabis Inc. (NASDAQ:ACB) (TSX:ACB) entered into an agreement under which Canaccord Genuity has agreed to buy, on a bought deal basis, 46.25 million company shares at a price of CA$0.73 ($0.54) per share, for aggregate gross proceeds to Aurora of approximately CA$33.76 million.
Aurora has also granted Canaccord Genuity an option to purchase up to 6,94 million additional shares 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 approximately CA$38.83 million.
The company plans to use the net proceeds of the offering to repay the remainder of its outstanding convertible senior notes at or before maturity, representing a principal outstanding of approximately $25 million, with the remainder, if any, to be used for strategic purposes, including potential acquisitions.
See Also: Canadian Cannabis Giant Takes Strategic Steps To Reduce Debt & Boost Financial Stability
The closing of the offering is expected to take place on or about October 3, 2023, and will be subject to customary conditions, including approvals of the Toronto Stock Exchange.
Price Action
Aurora shares were trading 14.17% lower at 57 cents per share at the time of publishing Thursday.
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Photo: Courtesy of Richard T on Unsplash
