Aurora Cannabis Inc. (“Aurora” or the “Company”) has announced
today that it 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 12,000,000 units of the Company (the “Units”), at a price of
US$10.45 per Unit for gross proceeds of approximately US$125
million (the “Offering”). Each Unit will be comprised of one common
share of the Company (a “Common Share”) and one half of one common
share purchase warrant of the Company (each full common share
purchase warrant, a “Warrant”). Each Warrant will be exercisable to
acquire one common share of the Company (a “Warrant Share”) for a
period of 36 months following the closing date of the Offering at
an exercise price of US$12.60 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% of the Offering to cover over-allotments, 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 towards being a leader in
global cannabinoids.
The closing of the Offering is expected to take
place on or about January 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 (the “Prospectus
Supplement”) to the Company’s short form base shelf prospectus
dated October 28, 2020 (the “Base Shelf Prospectus”) 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 (the “SEC”) as
part of the Company’s registration statement on Form F-10 (the
“Registration Statement”) 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 and 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.
Copies of the Prospectus Supplement, following
filing thereof, and the Base Shelf Prospectus will be available on
SEDAR at www.sedar.com and copies of the Prospectus Supplement and
the Registration Statement will be available on EDGAR at
www.sec.gov. Copies of the Prospectus Supplement, following filing
thereof, the Base Shelf Prospectus and the Registration Statement
may also be obtained from BMO Capital Markets by contacting BMO
Capital Markets, Brampton Distribution Centre C/O The Data Group of
Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 or by
telephone at (905) 791-3151 Ext 431 or by email at
torbramwarehouse@datagroup.ca or from BMO Capital Markets Corp.,
Attn: Equity Syndicate Department, 3 Times Square, 25th Floor, New
York, NY 10036 (Attn: Equity Syndicate), or by telephone at (800)
414-3627 or by email at bmoprospectus@bmo.com. Copies of such
documents may also be obtained from ATB Capital Markets Inc., Attn:
Gail O'Connor, 410-585 8th Ave SW, Calgary, Alberta, T2P 1G1, (403)
539-8629 or by email from atbcm_dealflow@atb.com.
No securities regulatory authority has either
approved or disapproved of the contents of this press release. This
press release is for information purposes only and shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Aurora
Aurora is a global leader in the cannabis
industry serving both the medical and consumer markets.
Headquartered in Edmonton, Alberta, 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. For more
information, please visit our website at www.auroramj.com.
Aurora’s common shares trade on the TSX and NYSE
under the symbol “ACB”, and is a constituent of the S&P/TSX
Composite Index.
Further Information
For Media: |
For Investors: |
|
|
Michelle Lefler |
ICR, Inc. |
VP, Communications & PR |
Investor Relations |
media@auroramj.com |
aurora@icrinc.com |
Forward Looking Statements
This news release includes statements containing
certain "forward-looking information" within the meaning of
applicable securities law ("forward-looking
statements"). Forward-looking statements are frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements made in this news release include
statements regarding: the timing and completion of the Offering and
the expected use of proceeds of the Offering. These forward-looking
statements are only predictions. Various assumptions were used in
drawing the conclusions or making the projections contained in the
forward-looking statements throughout this news release. Forward
looking statements are based on the opinions, estimates and
assumptions of management in light of management's experience and
perception of historical trends, current conditions and expected
developments at the date the statements are made, such as current
and future market conditions, the ability to maintain SG&A
costs in line with current expectations, the ability to achieve
high margin revenues in the Canadian consumer market, the current
and future regulatory environment and future approvals and permits.
Forward-looking statements are subject to a variety of risks,
uncertainties and other factors that management believes to be
relevant and reasonable in the circumstances could cause actual
events, results, level of activity, performance, prospects,
opportunities or achievements to differ materially from those
projected in the forward-looking statements, including the risks
associated with: entering the U.S. market, the ability to realize
the anticipated benefits associated with the acquisition of Reliva,
achievement of Aurora’s business transformation plan, general
business and economic conditions, changes in laws and regulations,
product demand, changes in prices of required commodities,
competition, the effects of and responses to the COVID-19 pandemic
and other risks, uncertainties and factors set out under the
heading “Risk Factors” in the Company’s annual information form
dated September 24, 2020 (the “AIF”) and filed
with Canadian securities regulators available on the Company’s
issuer profile on SEDAR at www.sedar.com and filed with and
available on the SEC’s website at www.edgar.gov. The Company
cautions that the list of risks, uncertainties and other factors
described in the AIF is not exhaustive and other factors could also
adversely affect its results. Readers are urged to consider the
risks, uncertainties and assumptions carefully in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such information. The Company is under no obligation,
and expressly disclaims any intention or obligation, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable securities law.
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