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 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.
Get access to more in-depth market analysis, premium features on cannabis investing trends and monthly executive webcasts with an Investor Intelligence subscription.