(Photo Credit - KMR Photography)
While the company already has a massive treasury, Aurora Cannabis Inc. (TSX:ACB) (OTC:ACBFF) (FRA:21P) just announced today that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. (TSX:CF), where the underwriters have agreed to purchase 16,700,000 units at a price of $3.00 CAD per unit.
This bought deal financing round will leave aggregate gross proceeds for Aurora of $50,100,000 CAD, equivalent to roughly $40,105,050 USD. Each unit is comprised of one common share of Aurora and one common share purchase warrant. Each warrant 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 CAD per warrant share, subject to adjustment in certain events such as a share split.
Aurora has also granted the underwriters an over-allotment option to purchase up to 2,505,000 additional units on the same terms as the above offering. If the over-allotment option is exercised in full, the aggregate gross proceeds of the offering will be $57,615,000 CAD, equivalent to roughly $46,086,471.84 USD.
Net proceeds from the offering will be used to further Aurora's aggressive strategic growth initiatives including continued domestic and international expansion, and of course for general working capital purposes.
"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."
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