Cannapany on June 2, 2022 No Comments
The cannabis company now has additional capital to help it expand its operations
The Canada-based company defining the future of cannabinoids worldwide, Aurora Cannabis, has started the month by announcing the closing of its offer to purchase units of the company for gross proceeds of approximately $172.5 million. The deal was announced recently, and now the company said it sold more than 70 million units with an individual price of $2.45. Also added to the equation are approximately 9.2 million units sold pursuant to the full exercise of the underwriters’ over-allotment option.
Each unit is comprised of one common stock purchase warrant and one share of Aurora common stock. The terms indicate that each warrant is exercisable (at a price of $3.20 per warrant share) to acquire one common share of the company for a period of 36 months after the offering closes. All of this will be subject to various adjustments.
The offering had Canaccord Genuity and BMO Capital Markets as its bookrunners. According to Aurora management, the net proceeds of the offering will be used essentially for general corporate purposes. Following the outcome of the recently raised capital, the firm made it clear that the previously announced at-the-market (ATM) facility will not be used again in the near term.
The company filed a prospectus supplement in connection with the offering, which can be found on SEDAR. This supplement was attached to the company’s short-form base shelf prospectus, dated March 29, 2021 (the “Base Shelf Prospectus”) with the Canadian securities regulators and the U.S. Securities and Exchange Commission.
It is part of Aurora’s registration statement on Form F-10, which is the “Registration Statement”) under U.S./Canada Multijurisdictional disclosure System, from May 27, 2022. The Prospectus Supplement, Base Shelf Prospectus and the Registration Statement provide important information about the company as well as the offering, giving shareholders a better understanding of the financial intricacies of the deal.
Congratulation!