Alberta, Canada-based medical marijuana cultivator Aurora Cannabis announced Tuesday that it plans to raise 25 million Canadian dollars ($19 million) in a private placement of convertible debentures.
The debt instruments mature in two years and can be converted into shares priced at CA$2.
Under the terms of the private placement, Aurora said in a press release, it also plans to convert CA$10 million of preexisting convertible debentures, with annual 10% interest rate, into about 8,695,652 additional common shares.
Aurora, which trades on the Toronto Venture Exchange, will use the proceeds mainly for expansion and “working capital,” the release said. The company, which trades under the ticker symbol ACB, was trading at about CA$2.34 at mid-day. Aurora’s stock took off Oct. 6.
This latest offering gives the company more than $45 million in spending capital, CEO Terry Booth said in the press release.