- Aurora Cannabis Inc. (ACB) pushes for a deal amounting to US$125 million through bought deal financing
- The underwriters have agreed to buy on a bought deal basis 12 million units of Aurora Cannabis, at US$10.45 per unit of gross proceeds of around US$125 million
- Aurora has also granted the underwriters an option. This option is exercisable at the offering price for 30 days following the closing of the offering
- The underwriters would be able to purchase up to an additional 10 per cent of the offering to cover over-allotments
- Aurora Cannabis was at C$14.09 per share at close
Aurora Cannabis Inc. (ACB) pushes for a deal amounting to US$125 million through bought deal financing.
It turns out; syndication is not solely for the television industry. Aurora Cannabis has entered into its agreement with a syndicate of underwriters led by BMO Capital Market and ATB Capital Markets.
The underwriters have agreed to buy on a bought deal basis 12 million units of Aurora Cannabis, at US$10.45 per unit of gross proceeds of around US$125 million.
Each unit will consist of one common share of Aurora and one half of one common share purchase warrant of Aurora.
It also stated that each warrant would be exercisable to acquire one common share of Aurora for a period of 36 months following the closing date of the offering at an exercise price of US$12.60 per warrant share.
In certain occurrences, this is subject to adjustment.
Aurora has also granted the underwriters an option. This option is exercisable at the offering price for 30 days following the closing of the offering.
The underwriters would be able to purchase up to an additional 10 per cent of the offering to cover over-allotments.
The net proceeds may be used towards general corporate needs where money may be allocated to reducing some debt.
On January 26, 2021, the closing of the offering is expected to happen. At this point, it will be subject to customary conditions, including approvals of the Toronto Stock Exchange and the New York Stock Exchange.
Aurora is a cannabis company providing cannabis to both consumer and medical markets, with several brands under its cap. The headquarters are in Edmonton, Alberta.
Aurora Cannabis was at C$14.09 per share at close.