Aurora Completes $75 Million Debenture Offering
TSXV: ACB
VANCOUVER, May 2, 2017 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (TSXV: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) is pleased to announce that, further to its news release dated April 11, 2017, it has completed its bought deal private placement (the "Offering") of 7.0% unsecured convertible debentures (the "Debentures") of the Company with a syndicate of investment dealers, led by Canaccord Genuity Corp., including GMP Securities L.P, Eight Capital, PI Financial Corporation, Industrial Alliance Securities Inc., and Mackie Research Capital Corporation, for gross proceeds of $75 million.
"With a cash position exceeding $160 million, we are exceptionally well positioned to execute on our expansion strategy, both nationally and internationally," said Terry Booth, CEO. "The acquisition of Peloton in Quebec and our investment in Cann Group in Australia are the first steps in growing our footprint, and we will continue to pursue aggressively other opportunities we have identified to transform Aurora from one of the largest Canadian cannabis companies into a global leader."
The Debentures are senior unsecured obligations of the Company and bear interest from the date of closing at 7.0% per annum, payable semi-annually on June 30 and December 31 of each year. The Debentures will mature on May 2, 2019 (the "Maturity Date").
The Debentures are convertible at the option of the holder into common shares of the Company at any time prior to the close of business on the Maturity Date, at a conversion price of $3.29 per common share, subject to customary anti-dilution adjustments, (the "Conversion Price"). Holders converting their Debentures will receive accrued and unpaid interest thereon, up to, but excluding, the date of conversion.
If, prior to the Maturity Date, the volume-weighted average trading price of the common shares on the TSX Venture Exchange ("TSX-V") for 10 consecutive trading days equals or exceeds $4.94, as may be adjusted from time to time, the Company may force conversion of all the then outstanding Debentures at the Conversion Price, upon giving the holders of Debenture 30 days' prior written notice.
The Company intends to use the net proceeds of the Offering for international expansion and growth opportunities.
All securities issued in connection with the Offering, which includes certain insider participation, are subject to a four month hold period expiring September 3, 2017.
An insider of the Company was issued, directly and indirectly, Debentures in the aggregate principal amount of $300,000, which constituted a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance to the insider is exempt from the formal valuation and the minority shareholder approval requirements of MI 61-101, as the fair market value of the Debentures issued to and the consideration paid by such person did not exceed 25% of the Company's market capitalization.
About Aurora
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"). The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, and is currently constructing a second 800,000 square foot production facility, known as "Aurora Sky", at the Edmonton International Airport, and has acquired, and is undertaking completion of, a third 40,000 square foot production facility in Pointe Claire, Quebec, near Montreal. In addition, the company is the cornerstone investor with a 19.9% stake in Cann Group Limited, the first Australian company licensed to conduct research on and cultivate medical cannabis. Aurora's common shares trade on the TSX-V under the symbol "ACB".
On behalf of the Board of Directors,
AURORA CANNABIS INC.
Terry Booth, CEO
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). The forward-looking statements include, among other things, statements about the use of proceeds from the Offering. 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. These 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 and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. 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 law.
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Aurora Cannabis Inc.
For Aurora Cannabis Inc., Cam Battley, Executive Vice, President, +1.905.864.5525, [email protected], www.auroramj.com; Marc Lakmaaker, NATIONAL Equicom, [email protected], +1.416.848.1397
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