In June, when Aurora Cannabis (CSE: ACB) (OTC: ACBFF) announced the pending acquisition of CanvasRx, it had disclosed that it would be raising $15mm through a private-placement deal managed by Canaccord Genuity. Today, the company announced that it has increased the offering to $18mm, with the potential to realize gross proceeds of up to $23mm if the underwriter exercises its option to acquire additional shares within 48 hours of the closing, which is expected to take place on July 28th.
This financing will provide Aurora with the capital to execute on core elements of our strategic plan, and I’m very pleased by the enthusiastic response to the private placement. Since we commenced product sales in January 2016, we’ve established ourselves as a leading driver in the cannabis sector, with unprecedented rates of growth and patient registration.
Terry Booth, CEO of Aurora Cannabis
Our business strategy is to rapidly expand production capacity, continue to operationalize industry leading technology, and ensure absolute consistency of the Aurora Standard, in terms of our product quality and our customer care experience.
The company revealed the terms of the financing, which consists of units, priced at $0.40, that include a share of stock and a warrant to buy an additional share at $0.55. Aurora Cannabis intends to use the cash it raises to fund part of the CanvasRx acquisition, to further build out its cultivation facility and to construct a second cultivation facility in Alberta.
