Ms. Michelle Lefler reports
AURORA CANNABIS INC. ANNOUNCES US$125 MILLION BOUGHT DEAL FINANCING
Aurora Cannabis Inc. has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and ATB Capital Markets, under which the underwriters have agreed to buy on bought deal basis 12 million units of the company at a price of $10.45 (U.S.) per unit for gross proceeds of approximately $125-million (U.S.). Each unit will comprise one common share of the company and one-half of one common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share of the company for a period of 36 months following the closing date of the offering at an exercise price of $12.60 (U.S.) per warrant share, subject to adjustment in certain events.
The company has granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 10 per cent of the offering to cover overallotments, if any. This option may be exercised by the underwriters for additional units, common shares, warrants or any combination of such securities.
The net proceeds of the offering will be used for general corporate purposes, which may include opportunistically reducing debt. The company believes that the offering fits with its broader strategy to have a strong balance sheet while maintaining maximum flexibility to invest and build toward being a leader in global cannabinoids.
The closing of the cffering is expected to take place on or about Jan. 26, 2021, and will be subject to customary conditions, including approvals of the Toronto Stock Exchange and the New York Stock Exchange.
A prospectus supplement to the company's short form base shelf prospectus dated Oct. 28, 2020, will be filed with the securities commissions or securities regulatory authorities in each of the provinces of Canada, except Quebec, and with the U.S. Securities and Exchange Commission as part of the company's registration statement on Form F-10 under the U.S./Canada Multijurisdictional Disclosure System. The prospectus supplement, the base shelf prospectus and the registration statement contain important detailed information about the company and the proposed offering. Prospective investors should read the prospectus supplement, the base shelf prospectus, the registration statement and the other documents the company has filed for more complete information about the company and this offering before making an investment decision.
Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alta., Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The company's brand portfolio includes Aurora, Aurora Drift, San Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler and Reliva CBD. Providing customers with innovative, high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched.
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