On June 8th, Aurora Cannabis (CSE: ACB) (OTC: ACBFF) announced a transaction to buy CanvasRx and a $15mm capital raise to be managed by Canaccord to fund production capacity expansion. Today, the company provided an update, announcing that the deal, which ended up totaling $23mm, has closed. Aurora Cannabis issued 57.5mm units at $0.40. Each unit consisted of a common share and a warrant to buy an additional share at $0.55 within two years. All securities are subject to a four-month holding restriction.
When the CanvasRx deal was announced, the company had disclosed that it would pay “an upfront cash payment of $1,575,000 paid on closing, and additional future consideration based on the achievement of certain performance milestones.” Today, the company revealed the total potential value, including milestones over a three-year period, at $37.5mm. CanvasRx is the largest medical cannabis patient outreach service in Canada.
This financing and acquisition provide Aurora with the capital and the partner to continue to responsibly expand our position in the cannabis sector. With our industry-leading product quality and patient acquisition rate, our innovative use of technology and ultra-low cost of production, as well as our immediate plans for significant capacity expansion, Aurora is ideally placed to thrive in both the medical cannabis business and the eventual adult consumer cannabis market.
Terry Booth, CEO
The capital raise is one of several by LPs since the Liberal Party victory last year fueled optimism that Canada will legalize cannabis for adult use.
