Aurora Cannabis (TSX: ACB) (NYSE: ACB) seemingly can’t resist returning to the market when financings start flying, with the company announcing after the bell today that it is raising US$125 million via a bought deal financing. The financing, lead by BMO Capital Markets and ATB Capital Markets, will see units of the company sold at US$10.45 each.
Under the terms of the offering, each unit will contain one common share and one half of a common share purchase warrant. Each warrant is valid for a period of three years from the date of issuance, and contains an exercise price of US$12.60 per share, which is subject to adjustment based upon certain undisclosed events.
A 10% over-allotment option has also been issued in connection with the offering.
Net proceeds from the offering are to be used for general corporate purposes, with the company notably also identifying that it may “opportunistically reduce debt.” The offering primarily is to be used to build the firms balance sheet, as per the news release.
The financing is expected to close January 26, 2021.
Aurora Cannabis last traded at C$12.09 per share.
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.
