Two cannabis giants each closed their respective funding deals on Tuesday.
Canadian Aurora Cannabis Inc. ACB ACB closed its previously announced bought deal offering of 53,187,500 common shares of the company at CA$0.73 per offered security for aggregate gross proceeds to Aurora of approximately CA$38,826,875 ($28.5).
The gross proceeds include the full exercise of the over-allotment option by Canaccord Genuity to purchase 6,937,500 additional common shares of the company on the same terms as the offering.
"It is our intention to use the majority of the net proceeds from the Offering to repay the remaining balance of our convertible notes at or prior to maturity, representing principal outstanding of approximately US$25 million," Aurora's CEO Miguel Martin said. "Pro forma the Offering but prior to any repayment of convertible notes, Aurora has a highly flexible capital structure, with approximately C$227 million of total cash available to support strategic growth initiatives and value accretive M&A opportunities."
Curaleaf Holdings, Inc. CURA CURLF closed its previously announced marketed offering of subordinate voting shares for total gross proceeds to the company of CA$16.2 million.
The company made the offering to satisfy a condition required for a potential listing of the subordinate voting shares on the Toronto Stock Exchange and planned to use a portion of the proceeds of the offering to fund the working capital requirements of its international business operated by Curaleaf Holdings International and for general corporate purposes.
Canaccord Genuity acted as the sole underwriter and bookrunner for the offering.
ACB Price Action
Aurora's shares traded 3.0179% lower at $0.5431 per share at the time of writing on Tuesday morning.
CURLF Price Action
Curaleaf's shares traded 3.34% lower at $4.4175 per share at the time of writing on Tuesday morning.
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