It seems that Aurora Cannabis (TSX: ACB) (NYSE: ACB) is intending to use its recent volatility as an opportunity to raise funds. The company last night announced that it will be conducting a proposed overnight marketed public offering. The company is presently looking to raise total gross proceeds of US$125 million.
Proceeds are to be attempted to be raised at a price of US$7.50 per unit, with each unit comprising of one common share and one half of one common share purchase warrant of the company. Each warrant is to be valid for a period of 40 months from the date of issue, with an exercise price of US$9.00 per share.
Final terms of the offering are to be determined at the time of pricing. Given the nature of the public offering, pricing is subject to change. It’s expected that an update on the financing will be provided at some point today.
Net proceeds from the financing are to be used to fund growth opportunities, working capital, and other general corporate purposes.
The cash balance of the company as of November 6, 2020 is said to be approximately C$250 million.
Aurora Cannabis last traded at $8.30 on the NYSE prior to sinking to $6.97 in after hours trading following the financing announcement.
Information for this briefing was found via Sedar and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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