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Aurora Cannabis Announces $50,625,000 Bought Deal Private Placement of Units
VANCOUVER, Jan. 24, 2017 /CNW/ – Aurora Cannabis Inc. (the “Company” or “Aurora” or the “Issuer”) (TSXV: ACB) (OTC: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) announced today that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. (collectively, the “Underwriters”) pursuant to which the Underwriters have agreed to purchase, on a bought deal private placement basis 22,500,000 units of the Company (the “Units”), at a price of $2.25 per Unit (the “Offering Price”) for aggregate gross proceeds to Aurora of $50,625,000 (the “Offering”).
Each Unit will be comprised of one common share of the Company (a “Common Share”) and half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one Common Share (a “Warrant Share”) for a period of two years following the closing date of the Offering at an exercise price of $3.00 per Warrant Share, subject to adjustment in certain events. The Warrants will be subject to a forced exercise provision if the Company’s daily volume weighted average share price on the TSX Venture Exchange (or such other stock exchange the Company may be trading on) is greater than $4.50 for 10 consecutive trading days. Net proceeds from the Offering will be used primarily towards the Company’s strategic growth initiatives including its planned facility expansion, and for general working capital purposes.
Closing of the Offering is expected to occur on or about February 23, 2017. The Offering is in the form of a bought deal private placement (i) in Canada to “accredited investors” within the meaning of National Instrument 45-106 and other exempt purchasers in each province of Canada, as agreed upon by the Issuer and the Underwriters, (ii) in the United States only to Qualified Institutional Buyers (within the meaning of Rule 144A), and in each case in compliance with the securities laws of the applicable states of the United States, to investors that the Underwriters have reasonable grounds to believe and do believe are Qualified Institutional Buyers, and (iii) outside Canada and the United States on a basis which does not require the qualification or registration of any of the Common Shares, Warrants, Warrant Shares of the Issuer.
Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR) and operates a 55,200 square foot, expandable, state-of-the-art production facility in Mountain View County, Alberta, Canada. Aurora trades on the TSX Venture Exchange under the symbol “ACB”.
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