Aurora Cannabis announces bought deal financing, upsizes to $150 million

Aurora Cannabis entered a bought deal financing worth $125 million, then upsized that funding to $150 million.

The Edmonton, Alberta-based cannabis producer made the initial announcement after financial markets closed Thursday.

Aurora then announced on Friday morning that it is upsizing the deal to 61.2 million units for gross proceeds of roughly $150 million.

Under the financing terms, a group of underwriters led by Canaccord Genuity and BMO Capital Markets agreed to buy the units of Aurora for $2.45 per unit

Each unit includes one Aurora share and one share purchase warrant exercisable within three years at $3.20, with provisions for adjustments.

The offering is expected to close on or around June 1.

“The net proceeds of the offering will be used for general corporate purposes,” Aurora said in a news release.

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Aurora recently reported a net loss of 1 billion Canadian dollars ($770 million) for its quarter ended March 31 and said it is selling its massive Aurora Sky greenhouse facility for much less than the facility cost to build.

Shares of Aurora trade as ACB on the Nasdaq and Toronto Stock Exchange.