Aphria prices $300M of convertible notes to fund global marijuana expansion

Canadian cannabis firm Aphria plans to raise capital via convertible senior notes in a private placement offering to fund international expansion initiatives and future acquisitions.

Aphria priced $300 million of convertible senior notes due in 2024 for qualified institutional buyers, plus an option – exercisable within a 30-day period – for an additional $50 million, the Leamington, Ontario, company said in a news release.

The sale to the initial purchasers is expected to take place April 23.

The notes will accrue interest at a rate of 5.25% per year, payable semiannually on June 1 and Dec. 1 of each year, starting Dec. 1, 2019.

The conversion rate will be 106.5644 common shares per $1,000 principal amount of notes – which the company says is equivalent to an initial conversion price of about $9.38 per common share.

As of Feb. 28, Aphria reported cash and cash equivalents worth 107 million Canadian dollars.

Aphria trades under the ticker symbol APHA on the Toronto Stock Exchange and the New York Stock Exchange.

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