Aurora Cannabis To Raise $300M, Files Prospectus Supplement For ATM Offering Program Ahead Of Transfer To NASDAQ

Canadian cannabis company Aurora Cannabis Inc. ACB ACB is seeking to raise $300 million by selling its commons shares through the at-the-market offering.

The move came on the heels of confirming that its subsidiary Aurora Germany GmbH extended its collaboration with Grow Group PLC., a United Kingdom-focused biopharmaceutical company, by inking a two-year market access services deal for the U.K.

The Edmonton, Alberta-based company reported late Thursday it had filed a prospectus supplement - previously disclosed in its third-quarter earnings report - to further boost its cash position of $525 million as of May 13.

Sales of the company’s common shares are possible only on US-listed exchanges, via “at-the-market distributions,” with no sales to be made via the Canadian stock exchange or the stock market.

Distributions will be made under the sales agreement between Aurora Cannabis, a syndicate of agents led by Citigroup Global Markets Inc. and Cowen and Company, LLC, with BMO Capital Markets Corp., ATB Capital Markets USA Inc. and Canaccord Genuity LLC also participating in the transaction.

Aurora Cannabis noted that these funds will provide it with “maximum flexibility” to pursue acquisition opportunities. The company also said it doesn’t expect to “need to access the ATM Program without an accretive use of proceeds.”

The financing deal is effective as of May 19, 2021.

After reporting its third-quarter financial report earlier this month, revealing 19.5% year-over-year, 17% sequential drop in revenue, and an EBITDA loss of CA$24 million, Cantor Fitzgerald’s analyst Pablo Zuanic lowered their price target and kept a “Neutral” rating on Aurora’s stock.

Price Action

Aurora’s shares were trading 0.48% higher at $7.36 at the time of writing.

Photo by Avery Meeker on Unsplash