We were just discussing AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) last week after the company revealed a new product for shipping live cannabis plants to prospective growers where it is currently legal to do so.
We’ve routinely come back to mentioning Aurora all year and have cited it as one of our favorite Canadian cannabis stocks, for good reason. The company is one of the most active when it comes to developing and pursuing new areas of the cannabis sector. The news presently hitting the wires concerning a considerable amount of incoming financing should provide plenty of capital for the company to continue its steady expansion.
AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) made it known that the company has entered into a revised agreement with a syndicate of underwriters led by Canaccord Genuity Corp. to increase the size of its previously announced bought deal financing to $60 million aggregate gross proceeds, representing 20,000,000 units of the Company, at a price of $3.00 per Unit (the “Offering Price”).
Each Unit will be comprised of one common share of the Company and one common share purchase warrant. Each Warrant will be exercisable to acquire one common share for a period of 3 years following the closing date of the Offering at an exercise price of $4.00 per Warrant Share, subject to adjustment in certain events.
Aurora has also granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to 3,000,000 additional Units of the Company on the same terms as the Offering. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering would be $69,000,000.
Net proceeds from the Offering will be used primarily towards the Company’s strategic growth initiatives including continued domestic and international expansion, and for general working capital purposes.
Closing of the Offering is expected to occur on or about November 2, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.
The Offering is in the form of a bought deal public offering in each of the provinces of Canada (excluding Quebec), in the United States only to Qualified Institutional Buyers (within the meaning of Rule 144A), and in each case in compliance with the securities laws of the applicable states of the United States.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. (Source: Canada Newswire)
Despite not being open to US investors, as we mentioned above, the deal should bring Aurora the capital fuel it needs to continue its aggressive growth. We’ll stay on its trail for further updates on its recent agreements, acquisitions, and product launch. There’s also the status of the cannabis export pipeline the company opened to Germany last month for us to monitor, so we’ll stay on top of that as well. Stay locked to Street Register for updates, and we’ll deliver those important developments on ACBFF to you as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ACBFF stock, short or long.