Total
0
Shares
Eguana Technologies (TSXV:EGT) releases 2020 annual results
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

    More From The Market Herald
    Sweet Earth (CSE:SE) signs letter of intent to launch German online shopping portal

    " Sweet Earth (CSE:SE) signs letter of intent to launch German online shopping portal

    Sweet Earth (SE) has signed a letter of intent with an investment consortium to launch a German online shopping portal.
    Medipharm Labs - President and Interim CEO, Keith Strachan - The Market Herald Canada

    " MediPharm Labs (TSX:LABS) closes bought deal equity financing

    MediPharm Labs Corp. (LABS) is pleased to announce the closing of its “bought deal” offering.
    cannabis products - The Market Herald Canada

    " TILT Holdings Inc. (CSE:TILT) announces the launch of Her Highness NYC cannabis brand in Massachusetts

    TILT Holdings (TILT) is pleased to announce the launch of Her Highness NYC branded THC products in Massachusetts.
    Nextleaf Solutions (CSE:OILS) awarded cannabis extraction patent in Israel

    " Nextleaf Solutions (CSE:OILS) supplies rapid emulsion to BevCanna

    Nextleaf Solutions Ltd. (OILS) is pleased to announce the initial order of Nextleaf’s Rapid concentrate to cannabis-infused beverage manufacturer, BevCanna Enterprises Inc.