Some degree of investor demand evidently remains within the Canadian cannabis sector. Aurora Cannabis (TSX: ACB) last night announced that it will be conducting a rather large financing, which is to take the form of a bought deal.
The financing will see the company raise gross proceeds of US$125.0 million. Led by Canaccord Genuity and BMO Capital Markets, the financing will consist of units priced at US$2.45 per each.
Each unit is to contain one common share and one 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$3.20 per share. A total of 51.1 million units are to be sold under the offering.
A 15% over-allotment option has also been granted in connection with the financing.
Proceeds from the financing are to be used for general corporate purposes. The financing is currently slated to close June 1.
The company reported a cash position of C$429.9 million as of March 31, although subsequent to quarter end it spent C$122.9 million on May 9 redeeming outstanding senior notes.
Aurora Cannabis last traded at $3.47 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. 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.