TSX: ACB | NYSE: ACB
EDMONTON, Jan. 18, 2019 /CNW/ - Aurora Cannabis Inc. (the
"Company" or "Aurora") (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM) today announced
that it has priced its previously announced offering of convertible
senior notes due 2024. The Company will issue US$300.0 million aggregate principal amount of
notes, or US$345.0 million aggregate
principal amount if the initial purchasers' over-allotment option
is exercised in full. The notes will be issued at par value.
Aurora expects to use the net proceeds from the offering of the
notes to support its Canadian and international expansion
initiatives, for future acquisitions and for general corporate
purposes, including working capital requirements to continue the
Company's accelerated growth.
The notes will be unsecured and will mature on February 28, 2024. The notes will bear cash
interest semi-annually at a rate of 5.5% per annum. The initial
conversion rate for the notes will be 138.37 common shares per
US$1,000 principal amount of notes,
equivalent to an initial conversion price of approximately
US$7.23 per common share. The initial
conversion rate represents a premium of approximately 10.0% to
yesterday's common share closing sale price on the New York Stock
Exchange and is subject to adjustment in certain events.
Upon conversion, the notes will be settled in cash, Aurora
common shares or a combination of cash and Aurora common shares, at
Aurora's election. Aurora will have the right to redeem the notes
in certain circumstances after February 28,
2022 at a redemption price equal to 100% of the principal
amount of the notes to be redeemed, plus accrued and unpaid
interest. Holders will also have the right to require Aurora to
repurchase their notes upon the occurrence of certain customary
events at a purchase price equal to 100% of the principal amount of
the notes to be repurchased, plus accrued and unpaid interest.
The offering of notes is expected to close on or about
January 24, 2019, subject to
customary closing conditions. This announcement is neither an offer
to sell nor a solicitation of an offer to buy the notes or the
common shares of Aurora into which the notes are convertible and
shall not constitute an offer, solicitation or sale in any
jurisdiction in which such offer, solicitation or sale is
unlawful.
The notes and any common shares of Aurora issuable upon
conversion of the notes have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, or any state
securities laws, or qualified for distribution by prospectus in
Canada, and may not be offered or
sold in the United States absent
registration or an applicable exemption from such registration
requirements, or sold in Canada
absent an exemption from the prospectus requirements of Canadian
securities laws.
About Aurora
Headquartered in Edmonton, Alberta,
Canada with funded capacity in excess of 500,000 kg per
annum and sales and operations in 22 countries across five
continents, Aurora is one of the world's largest and leading
cannabis companies. Aurora is vertically integrated and
horizontally diversified across every key segment of the value
chain, from facility engineering and design to cannabis breeding
and genetics research, cannabis and hemp production, derivatives,
high value-add product development, home cultivation, wholesale and
retail distribution.
Highly differentiated from its peers, Aurora has established a
uniquely advanced, consistent and efficient production strategy,
based on purpose-built facilities that integrate leading-edge
technologies across all processes, defined by extensive automation
and customization, resulting in the massive scale production of
high quality product at low cost. Intended to be replicable and
scalable globally, our production facilities are designed to
produce cannabis of significant scale, with high quality,
industry-leading yields, and low per gram production costs. Each of
Aurora's facilities is built to meet EU GMP standards, and its
first production facility, the recently acquired MedReleaf Markham
facility, and its wholly owned European medical cannabis
distributor Aurora Deutschland, have achieved this level of
certification.
In addition to the Company's rapid organic growth and strong
execution on strategic M&A, which to date includes 15 wholly
owned subsidiary companies – MedReleaf, CanvasRX, Peloton
Pharmaceutical, Aurora Deutschland, H2 Biopharma, Urban Cultivator,
BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics,
Anandia Labs, HotHouse Consulting, MED Colombia, Agropro, Borela,
and ICC Labs – Aurora is distinguished by its reputation as a
partner and employer of choice in the global cannabis sector,
having invested in and established strategic partnerships with a
range of leading innovators, including: Radient Technologies Inc.
(TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group
Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom
Holdings Inc. (CSE: CHOO), Capcium Inc. (private), Evio Beauty
Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC:
CTTH), and Alcanna Inc. (TSX: CLIQ).
Aurora's Common Shares trade on the NYSE and TSX under the
symbol "ACB", and are a constituent of the S&P/TSX Composite
Index.
For more information about Aurora, please visit our investor
website, investor.auroramj.com
Terry Booth, CEO
Aurora Cannabis Inc.
Forward looking statements
This news release includes statements containing certain
"forward-looking information" and "forward looking statements"
within the meaning of applicable securities laws ("forward-looking
statements"). Forward-looking statements are frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Examples of such statements include statements with respect to the
anticipated completion of the notes offering and the planned use of
proceeds from the notes offering. The statements are based on the
opinion and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward looking statements,
including whether or not the Company will consummate the offering
and prevailing market conditions. The Company is under no
obligation, and expressly disclaims any intention or obligation, to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
Neither TSX nor its Regulation Services Provider (as that term
is defined in the policies of Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Aurora Cannabis Inc.