By Stephanie N. Rotondo
Seattle, April 11 – Aurora Cannabis Inc. increased the size of a previously announced bought-deal private placement of 7% two-year convertible debentures to C$75 million from C$40 million, the company said in a press release on Tuesday.
Canaccord Genuity Corp. is leading the deal’s syndicate of underwriters.
There is a C$20 million over-allotment option.
The debentures are convertible at any time prior to maturity at C$3.29 per share, in line with Monday’s closing share price. After four months and one day from the closing of the sale, the company can force a conversion if the average volume weighted share price exceeds C$4.94 for 10 consecutive days.
After one year, the company can redeem the issue at par plus accrued interest. Upon a change of control, holders can put the bonds at par plus accrued interest.
In connection with the deal, certain holders of the company’s 8% convertible debentures agreed to convert their paper into 8.75 million shares of common stock.
The company said the deal will allow the company to “aggressively pursue” international expansion opportunities.
Aurora Cannabis is a Vancouver, B.C.-based licensed producer of medical marijuana.
| Issuer: | Aurora Cannabis Inc.
|
| Securities: | Convertible debentures
|
| Amount: | C$75 million
|
| Greenshoe: | C$20 million
|
| Maturity: | Two years
|
| Bookrunner: | Canaccord Genuity Corp.
|
| Coupon: | 7%
|
| Price: | Par of $1,000
|
| Yield: | 7%
|
| Conversion price: | C$3.29 per share
|
| Conversion rate: | 303.95 shares
|
| Call options: | After one year at par plus accrued interest
|
| Change-of-control put: | At par plus accrued interest
|
| Contingent conversion: | After four months and one day if VWAP of shares exceeds C$4.94 for 10 consecutive days
|
| Pricing date: | April 11
|
| Settlement date: | April 26
|
| Distribution: | Bought deal private placement
|
| Stock symbol: | TSXV: ACB
|
| Stock price: | C$3.29 as of April 10 close
|
| Market capitalization: | C$1.04 billion
|
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