Aurora Cannabis Inc (OTCMKTS:ACBFF) will make gross proceeds of not less than $15 million from the completion of the brokered private placement with Canaccord Genuity Group Inc (TSE:CF). The company will now take control of the unsecured convertible debentures, which will mature on March 28, 2018. The move is expected to make better its balance sheet, placing it at $4 million of high interest and senior secured debt.
With a massive elimination of certain complicated debt agreements and compliance reporting, the financing, which provides Aurora with additional financial flexibility, will significantly impact on the improved balance sheet. Terry Booth, Aurora’s Chief Executive Officer, confirms that this will necessitate increased focus on reaching prosperity and building of long-term shareholder value.
The Debentures bear interest from the date of closing
It is possible to have the Debentures converted into common shares of the Company but at the option of the holder. Nonetheless, this must be done any time before the close of business on the Maturity Date. The conversion price is $1.15 per common share. There are possibilities of forcing the conversion of the entire principal amount if the VWAP of the common shares on the Canadian Securities Exchange equals or exceeds $2.00 for ten consecutive trading days before the Maturity Date.
The net proceeds of the Offering will not go towards general working capital purposes as well as the reduction of certain secured debt obligations.
Aurora Cannabis is also into TSX Venture Exchange
The company has obtained an approval of an application to list its common shares on the TSX-V where they will officially start trading the under the symbol ACB. Booth describes the listing as a significant milestone for the company‘s development because it outlines a remarkable commercial progress. The recent financing has also given the company more visibility.
Trading on the TSX-V will give Aurora, a licensed producer of medical marijuana more power to engage and satisfy a wider audience. Booth adds that it is as a result of discipline that the company has come far and it intends to continue with the same execution while seeking a leadership position in the cannabis sector.