Canada’s Aurora Cannabis files $1 billion shelf prospectus

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Aurora Cannabis filed a preliminary short-form base shelf prospectus to raise up to $1 billion by issuing securities over a 25-month period.

The cash raise will give Aurora “maximum flexibility to pursue strategic initiatives, which may include acquisitions or partnerships pursuant to the company’s previously stated global growth strategy,” Aurora said in a news release issued Wednesday.

Edmonton, Alberta-based Aurora had about 565 million Canadian dollars ($447.6 million) of cash on hand as of the end of its second quarter in February.

The prospectus was filed with Canadian securities regulators and with the U.S. Securities and Exchange Commission.

After it’s finalized, the prospectus will allow Aurora to sell securities such as common shares, warrants, options, subscription receipts and debt securities.

In January, Aurora raised $125 million by way of a bought deal to finance general corporate activities, “which may include opportunistically reducing debt.”

The company also issued a significant number of shares in November 2020.

In February, competitor Canopy Growth filed a preliminary short-form base shelf prospectus to raise up to $2 billion.

Aurora’s preliminary short-form base prospectus is available here.

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