Aphria buys back C$127.5 million of convertibles

By Rebecca Melvin

New York, May 8 – Aphria Inc. said it has bought back about C$127.5 million principal amount of convertible notes for about 18.7 million of common shares. It also paid C$2.9 million in cash for accrued and unpaid interest.

In privately negotiated agreements with a limited number of holders outside of Canada, Aphria agreed to repurchase a portion of the notes at a 25% discount to their face value, using shares issued at a 31% premium to Aphria’s most recent closing share price, which was equivalent to a conversion price of $4.84 per share, according to a company release.

The transactions reduce debt and eliminate C$6.7 million in annual cash interest, and were aimed at strengthening the company’s cash position, the company said. Its net cash position rose to C$163.8 million from C$36.3 million as of Feb. 29.

Aphria is a Leamington, Ont.-based cannabis company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.