Aurora Cannabis (TSXV: ACB) (OTC: ACBFF) announced another capital raise today, engaging Canaccord Genuity to help it raise up to $25mm through a private placement of 10% convertible notes that mature in two years and that are convertible into shares at $2.00. If the shares of ACB trade at or above $3.00 for ten consecutive days, the company would be able to force conversion. In early October, the company closed a $15mm convertible note offering. As part of the current offering, the holders will be converting $10mm of those convertible notes into 8.695mm shares.
This Offering, following our financings in August and September, will place Aurora in an extremely powerful financial position, with a current cash balance in excess of $45 million available to pursue all our strategic initiatives. We are now one of the best capitalized companies, with one of the strongest balance sheets in the cannabis sector.
Terry Booth, CEO
We have a large number of initiatives underway that ensure the Aurora Standard will remain the industry benchmark in terms of product quality, production capacity, technological innovation, and overall customer experience. We will continue to execute with discipline on our business strategy, with the objective of building the most valuable cannabis company in Canada.
The Canadian Licensed Producers (LPs) have raised a substantial amount of capital over the past year following the election of Justin Trudeau as Prime Minister, with Aurora Cannabis leading the way. Assuming the company raises the full $25mm, its capital raises of $70mm will represent 25.1% of all capital raised by the LPs:
ACB closed on 10/10 at $2.25 and is up 275% in 2016.
CEO Terry Booth will be speaking on a panel about the Canadian cannabis industry at the New West Summit in San Francisco on October 14th. Readers of New Cannabis Ventures can take advantage of discounted one-day or two-day admission to the conference.
