TSX: ACB |NYSE: ACB
EDMONTON, Jan. 16, 2019 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM) today announced that it proposes to offer pursuant to a private placement US$250.0 millionaggregate principal amount of convertible senior notes due 2024 (the "notes"). Aurora also intends to grant to the initial purchasers of the notes an option to purchase up to an additional US$37.5 million aggregate principal amount of notes.
Aurora expects to use the net proceeds from the offering of the notes to support its Canadian and international expansion initiatives, for future acquisitions and for general corporate purposes, including working capital requirements to continue the Company's accelerated growth.
The final terms of the notes will be determined by Aurora and the initial purchasers. The notes will bear cash interest semi-annually at a fixed rate and be convertible by holders into Aurora common shares at an initial conversion price higher than the closing common share price on the day of the pricing of the notes. Aurora currently expects that upon conversion the notes will be settled in cash, shares of Aurora common shares or a combination of cash and shares Aurora common shares, at Aurora's election. Aurora will be required to offer to repurchase the notes upon the occurrence of customary events.
This announcement is neither an offer to sell nor a solicitation of an offer to buy the notes or the common shares of Aurora into which the notes are convertible and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
The notes and any common shares of Aurora issuable upon conversion of the notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, or qualified for distribution by prospectus in Canada, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements, or sold in Canada absent an exemption from the prospectus requirements of Canadian securities laws.