Canadian marijuana company Aurora Cannabis reduced its debt load by repurchasing roughly 31.3 million Canadian dollars ($23 million) worth of its convertible senior notes.
The repurchase of some of the notes cost Aurora CA$29.8 million in cash, according to a Friday morning news release, with Aurora paying a 5.45% discount to the notes’ par value.
The Edmonton, Alberta-based producer said it repurchased the notes “to reduce the company’s debt and annual cash interest costs” and will save approximately CA$11.9 million in annual cash interest savings from note buybacks “made from Q3 2022 onwards.”
In June, Aurora bought back roughly $20 million of the same senior convertible notes.
The 5.5% senior convertible notes were originally issued in early 2019 and raised $345 million.
The notes mature in February 2024.
Aurora said Friday that its “balance sheet remains amongst the strongest in the industry, with approximately $380 million of cash and cash equivalents (including approximately $52 million of restricted cash).”
The company reiterated its plan for a positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) run rate by the end of this calendar year.
Aurora reported a CA$618.8 million loss in its most recent quarter.
Shares of Aurora trade as ACB on the Toronto Stock Exchange and the Nasdaq.
