Following its $23mm equity raise that closed in August, Aurora Cannabis (CSE: ACB) (OTC: ACBFF) has closed a $15mm convertible note private placement offering announced earlier this month. The company reported the closing of the deal earlier today.

The unsecured convertible debentures, which have a 10% interest rate and mature on 3/28/18, are convertible at $1.15 per common share. The company will be using $4mm of the proceeds to pay down existing debt that had a higher rate of interest, was secured and had some debt covenants the company deemed onerous.

This financing provides Aurora with additional financial flexibility and a significantly improved balance sheet, and enables us to further increase our focus on reaching profitability and building long-term shareholder value. With an improved working capital position and increasing revenues, Aurora continues to strengthen our financial foundation as we enter a pivotal and exciting period in the development of the cannabis sector.

Terry Booth, Aurora Cannabis CEO

Aurora Cannabis has seen its stock more than triple since late July following the $23mm capital raise.  The stock has gained 123%.

Exclusive article by Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email