Aurora Cannabis reached a stock-purchase deal to raise another 60 million Canadian dollars ($50 million) to fund its domestic and international expansion initiatives, bringing its new financing so far this year to CA$264.1 million.
Aurora – based in Alberta and traded on the Toronto Stock Exchange under the symbol ACB – said in a news release that the underwriters have an option to increase the proceeds of the latest capital raise to CA$69 million.
The CA$60 million funding, announced Tuesday, represents a CA$10 million increase from an initial bought deal transaction that Aurora had announced the same day.
Under the deal, the underwriters agreed to purchase 20 million Aurora shares for CA$3 per unit. Each unit consists of one common share and one warrant to acquire another share for CA$4.
Aurora is spending CA$100 million to build an 800,000-square foot-production facility, known as Aurora Sky, beside Edmonton International Airport. It will be capable of producing more than 100,000 kilograms of cannabis per year for Canada’s medical and recreational sectors when it’s completed in mid-2018.
Aurora recently acquired BC Northern Lights Enterprises and Urban Cultivator, both based in British Columbia, as part of its strategy to tap Canada’s rapidly growing market for patients who cultivate their own marijuana. Both companies supply self-contained indoor hydroponic grow systems.
To sign up for our weekly Canada marijuana business newsletter, click here.