Aurora Cannabis to repay rest of convertibles via bought deal financing

By Mary-Katherine Stinson

Lexington, Ky., Oct. 3 – Aurora Cannabis Inc. intends to use the majority of the funds from its C$38.8 million bought deal financing to repay the remaining balance of its convertible notes, according to a 6-K filing with the Securities and Exchange Commission.

Repaying the convertibles will save almost C$2 million in annual interest payments.

On Oct. 3, Aurora announced the closing of the bought deal offering of 53,187,500 company common shares at a price of C$0.73 per offered security for aggregate gross proceeds to Aurora of about C$38,826,875, which included the full exercise of the over-allotment option by Canaccord Genuity to purchase 6,937,500 additional common shares of the company on the same terms.

“It is our intention to use the majority of the net proceeds from the offering to repay the remaining balance of our convertible notes at or prior to maturity, representing principal outstanding of approximately US$25 million,” stated Aurora’s chief executive officer Miguel Martin in a press release.

“Pro forma the offering but prior to any repayment of convertible notes, Aurora has a highly flexible capital structure, with approximately C$227 million of total cash available to support strategic growth initiatives and value accretive M&A opportunities. As a result, we do not believe that we will need to pursue an at-the-market offering program for the medium term, as we expect to deliver on our stated objective of being free cash flow positive in calendar 2024,” Martin concluded.

Aurora is a cannabis company based in Edmonton, Alta.

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