Aurora Cannabis is raising $125 million via a stock-purchase deal to finance general corporate activities, which might include “opportunistically reducing debt,” the Alberta company announced.

Aurora said in a news release that it entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and ATB Capital Markets.

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The underwriters agreed to buy 12 million units on a bought-deal basis at a price of $10.45 apiece.

Each unit consists of a common share and a half of one common share purchase warrant at an exercise price of $12.60 per share.

The underwriters have an option to purchase up to an additional 10% of the offering.

The deal is expected to close around Jan. 26.

In a note to investors, Jefferies analyst Owen Bennett welcomed the move.

However, the analyst warned that the proceeds might not be enough.

“While the additional cash is encouraging, we do wonder if still too little to really get a strong US CBD and THC presence,” Bennett wrote.

Bennett said a strong presence in the United States is required to support Aurora’s current valuation.

Aurora trades as ACB on the Toronto Stock Exchange and New York Stock Exchange.