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Alcanna Closes $27.6M Share Offering With Aurora

Alcanna Closes $27.6M Share Offering With Aurora

Alcohol retailer Alcanna Inc. (TSX: CLIQ) (OTCPK: LQSIF) and cannabis company Aurora Cannabis Inc. (NYSE: ACB) confirmed they had finalized a deal offering worth $27.6 million.

Under the agreement between Alcanna, Aurora, and a syndicate of underwriters, including AltaCorp Capital Inc., CIBC World Markets Inc., and Cormark Securities Inc. - which led the process - underwriters agreed to buy 9.2 million Alcanna's common shares at $3 per share.

According to a Wednesday press release, the offering's net proceeds were paid to Aurora's wholly-owned subsidiary, which currently holds Alcanna's shares.

In addition, neither Aurora nor its subsidiary, own or control Alcanna's shares. 

The Edmonton-based company said it would cancel 1.75 million common share purchase warrants it issued to its subsidiary.

Aurora and Alcanna have been teaming up for years now, following the inking of a license agreement back in August 2018, which allowed Alcanna to launch retail cannabis stores across Canada under Aurora's trademark.

Meanwhile, last month Aurora was recognized as one of the top performers in the Canadian cannabis market, as cannabis sales spiked over the past couple of months.

Some of the company's latest moves include the $40 million acquisition of CBD platform Reliva.

Aurora expects to utilize Reliva's access to 20,000 retail locations and relationships with US wholesalers and distributors.

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