Capital-hungry Aurora Cannabis looks to raise CA$1 billion

Aurora Cannabis laid the foundation to raise up to $750 million (1 billion Canadian dollars) to fuel potential future acquisitions, other capital expenditures and debt repayments.

The Edmonton, Alberta-based company filed a base shelf prospectus with Canadian securities agencies and a corresponding shelf registration statement with the U.S. Securities and Exchange Commission.

The filing would clear the way for Aurora to issue debt securities, warrants, subscription receipts and units or common shares for a 25-month period, the company said in a news release.

Read the prospectus here.

As of Dec. 31, 2018, Aurora had cash and cash equivalents of CA$88 million, down sharply from CA$147 million as of Sept. 30, 2018.

The CA$1 billion would add to the CA$200 million the company raised earlier this year.

Demonstrating the capital requirements of companies such as Aurora, the firm’s giant cannabis greenhouse in Alberta came in over budget at CA$150 million. The company recently said the facility is fully licensed.

“With our recent listing on the (New York Stock Exchange), our successful financing in January 2019 led by U.S. institutional investors, and as we work with Nelson Peltz to explore potential partnership opportunities, this filing is a natural evolution for our company as we rapidly mature into a global and profitable organization,” Executive Chairman Michael Singer said in the release.

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

6 comments on “Capital-hungry Aurora Cannabis looks to raise CA$1 billion
  1. Brady Harness on

    Greetings,

    I have been Invested with Aurora Cannabis since early 2018 and have seen have a Positive growth.
    The only thing that some what bothers me is they seem to only half care about Investors and create Stocks out of thin air.
    I’m staying with them because of Professionals that have come on board.
    2019 should be the year that shows who I believe they really are; if they listen to people of Wisdom.
    A Happy Investor of Thousands!!!
    Brady Harness

    Reply
  2. Mitra Harrysingh on

    Having Nelson Peltz on board will definitely prove to be rewaring,patience is a virtue, add this company will be one of the few standing

    Reply
  3. Maxcatski on

    Wow, another billion dollars for a cannabis company that lost money in the last twelve months. And overspent by a mere $150 million on their Aurora Sky facility. It seems we have lost all sense of fundamentals in the cannabis markets.

    Canadian cannabis stocks are overwhelmingly overvalued. A day of reckoning is due.

    Reply
  4. Pasquale Carannante on

    Still buying as much as possible. Supply will be key to profitability long term in this industry and I believe they have a long term plan in place.

    Reply

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