Aurora Cannabis may fund growth with C$360 million term debt facility

By Devika Patel

Knoxville, Tenn., Sept. 12 – Aurora Cannabis Inc. will have “more than adequate” liquidity after putting in place an upsized C$360 million secured term debt facility last quarter.

“In August, we announced the upsizing of our secured term debt facility to C$360 million with an accordion feature for an additional C$40 million of capacity,” chief financial officer Glen Ibbott said on the company’s fourth quarter and year ended June 30 earnings conference call on Thursday.

“We believe we have more than adequate financial resources in the near term to execute our growth plans,” he said.

As of June 30, the company had C$218 million of cash and cash equivalents, compared to C$89 million last year.

On Aug. 15, Aurora Cannabis announced that it has secured commitments from an expanded syndicate of lenders led by the Bank of Montreal to amend and upsize its C$200 million secured credit facility.

The amended credit facility is to consist of an additional C$160 million allocated between both term loans and a revolving credit facility, both of which will mature in August 2021.

The credit facility will have a first ranking general security interest in the assets of Aurora.

The loans can be repaid without penalty at Aurora's discretion.

Aurora is a cannabis company based in Edmonton, Alta.

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