Aurora Cannabis prices early conversion privilege for 5% debentures

By Wendy Van Sickle

Columbus, Ohio, Nov. 25 – Aurora Cannabis Inc. announced the amended conversion price for its 5% convertible debentures due March 9, 2020 under an early amended conversion privilege.

The debentures that holders elected to convert will be converted into common shares of the company at a price of $3.2837, according to a news release.

The company said that holders of $227,019,000, or about 99%, of its C$230 million convertibles have elected to convert their debentures, which will result in the issuance of 69,135,117 common shares.

As previously reported, the company announced on Nov. 14 that it had notified holders that they may voluntarily convert their debentures at an amended early conversion ratio during a conversion period that ended at 5 p.m. ET on Nov. 20.

The amended early conversion ratio was determined using an amended early conversion price, which will represent a 6% discount to the five-day volume weighted average trading price of the common shares of the company on the Canadian and U.S. stock exchanges, according to a press release.

Holders who elected to convert their debentures were to receive common shares contractually due under the temporarily amended early conversion ratio equal to $1,000 principal amount divided by the amended early conversion price per $1,000 principal amount, accrued interest from June 30 to but excluding Nov. 25, and future unpaid interest from Nov. 25 to but excluding March 9, 2020.

Holders who converted their debentures during the early conversion period by 5 p.m. ET on Nov. 18 will receive the common shares due under the amended early conversion ratio under an alternate settlement process.

Holders who did not convert their debentures during the early conversion period will not be entitled to the benefit of the amended early conversion ratio and will not receive the common shares issuable upon conversion of the debentures, or upfront payment of interest to maturity.

Laurel Hill Advisory Group (877 452-7148, 416 304-0211 or assistance@laurelhill.com) is the solicitation agent.

Aurora is a cannabis company based in Edmonton, Alta.

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