By Stephanie N. Rotondo
Seattle, Oct. 11 – Aurora Cannabis Inc. plans to raise up to C$25 million though the sale of 8% two-year convertible debentures, the company said in a press release on Tuesday.
Canaccord Genuity Corp. is acting as the placement agent.
The debentures are convertible at any time prior to maturity at a conversion price of C$2.00 per share. The issuer can force a conversion of the paper if the volume weighted average price of the common stock trades at or above C$3.00 for 10 consecutive trading days.
The convertible notes are redeemable after 18 months.
In connection with the offering, the Vancouver, B.C.-based producer of medical marijuana will convert C$10 million of 10% convertible notes into 8.695 million common shares.
Proceeds from the sale will be used primarily toward planned capacity expansion and for general working capital purposes.
| Issuer: | Aurora Cannabis Inc.
|
| Securities: | Unsecured convertible debentures
|
| Amount: | C$25 million
|
| Maturity: | Oct. 25, 2018
|
| Agent: | Canaccord Genuity Corp.
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| Coupon: | 8%
|
| Price: | Par of C$1,000
|
| Yield: | 8%
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| Conversion price: | C$2.00
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| Pricing date: | Oct. 11
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| Settlement date: | Oct. 25
|
| Stock symbol: | TSXV: ACB
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| Stock price: | C$2.25 as of Oct. 10 close
|
| Market capitalization: | C$536.22 million
|
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