Shares of Aurora Cannabis experienced a significant drop after the company announced that it had secured $33.8 million through a bought-deal financing. The funds will be used to repay its convertible senior notes.
Share Price Decline
As of 9:49 a.m. ET, Aurora Cannabis shares were trading over 12% lower at C$0.80. The stock has seen a decline of more than 27% since the beginning of 2023 and is down approximately 49% over the last 52 weeks.
Bought-Deal Financing Details
The bought-deal financing, arranged with Canaccord Genuity, involves the purchase of around 46.3 million common shares at a price of C$0.73 per share. Although this per-share price is well below the stock’s highest point in the last year (C$2.15), it is an improvement from the low of C$0.59 during the same period.
Option for Additional Shares
Aurora Cannabis has granted Canaccord an option to acquire an additional 6.9 million shares under the same terms. If exercised, this could increase the total proceeds from the financing to C$38.8 million.
Repaying Convertible Senior Notes
The primary purpose of the raised capital is to pay off its outstanding convertible senior notes, with a principal balance of US$25 million. Aurora Cannabis aims to settle this debt by or before its maturity date.