Aurora Cannabis (TSX: ACB) (NYSE: ACB) announced this morning that their early conversion option on its $230 million worth of convertible debentures due in March 2020 was a resounding success. Approximately $227.0 million worth of debt has now been converted into equity at the early conversion price, which is a notable improvement from the previous update of $216.0 million.
While excellent for Aurora’s balance sheet, the early conversion option was trivial to shareholders. The Deep Dive has reported on the matter extensively, including the resulting slide in the share price following the announcement. The early conversion price was based on a five day volume weight average price, from the period of November 18, 2019 to November 22, with the resulting convert price being C$3.2837.
As a result of the early conversion, a total 69,135,117 common shares were issued.
Any current and future unpaid interest on the debt, up to but not including March 9, 2020, was paid out by Aurora in the form of cash. A total cash figure was not provided by the issuer.
A total of $2.3 million is expected to be remaining of the original $230 million convertible debenture. That debt will come due on March 9, 2020.
Aurora Cannabis last traded at $3.58 on the TSX.
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.