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VANCOUVER, Nov. 2, 2017 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (TSX: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM)) is pleased to announce that, further to its news release dated October 10, 2017, it completed its bought deal offering of 23,000,000 units ("Units") of the Company, including the exercise, in full, of the Underwriters' over-allotment option (the "Offering") with a syndicate of underwriters, led by Canaccord Genuity Corp., including GMP Securities L.P., PI Financial Corporation, Eight Capital, Industrial Alliance Securities Inc., Beacon Securities Limited and Mackie Research Capital Corporation (collectively, the "Underwriters"), for gross proceeds of $69 million. Each Unit, at a price of $3.00 per Unit, is comprised of one common share of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant will be exercisable to acquire one common share (a "Warrant Share") for a period of three years following the date hereof at an exercise price of $4.00 per Warrant Share, subject to adjustment in certain events. The Warrants are listed on the TSX under symbol ACB.WT.
Additionally, the Company completed a concurrent private placement of 2,000,000 Units of the Company for proceeds of $6 million, as previously announced on October 16, 2017 (the "Private Placement"), with the Units issued under the Private Placement having the same terms as the Units issued under the Offering. All securities issued in connection with the Private Placement are subject to a four month hold period expiring March 3, 2017.
The Company intends to use the net proceeds of the Offering and the Private Placement for the Company's strategic growth initiatives including continued domestic and international expansion.
Six insiders of the Company participated in the Offering, directly and indirectly, in the aggregate principal amount of $1.85 million, which constitutes 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 insiders is exempt from the formal valuation and the minority shareholder approval requirements of MI 61-101, as the fair market value of the Units issued to and the consideration paid by such persons did not exceed 25% of the Company's market capitalization.