Aurora Cannabis strikes deal to raise up to CA$230 million

Licensed medical marijuana producer Aurora Cannabis has reached a deal to raise up to 230 million Canadian dollars ($185 million), a sum CEO Terry Booth called “the largest bought deal financing” to date in the Canadian cannabis sector.

Cam Battley, executive vice president of Alberta-based Aurora, told Marijuana Business Daily, the Alberta-based company has raised about CA$600 million in new financing over the past 13 months.

Aurora is putting its capital to use. This week it:

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  • Purchased a 17.62% stake in the privately-held producer Green Organic Dutchman Holdings worth CA$55 million.
  • Bought 657,800 shares of rival cultivator CanniMed as part of a takeover attempt, including yesterday’s purchase of 91,800 units.
  • Inked a deal to build “Europe’s largest” medical cannabis facility in Denmark.
  • Signed a strategic partnership with Namaste Technologies.

Under the bought-deal transaction, the company said in a news release that a syndicate of underwriters has agreed to purchase 200,000 convertible debentures at a price of $1,000 each. The proceeds would total CA$200 million.

Aurora also granted the underwriters an option to purchase an additional 30,000 convertible debentures for additional proceeds of CA$30 million.

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The offer is expected to close around Jan. 31.

Aurora and CanniMed are traded on the Toronto Stock Exchange under the ticker symbols ACB and CMED, respectively. Namaste is traded on the Canadian Securities Exchange as N.

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