Canada-based Aurora Cannabis Inc. has secured commitments from an expanded syndicate of lenders led by the Bank of Montreal to amend and upsize its existing C$200 million secured credit facility.
The amended secured credit facility will consist of an additional C$160 million allocated between both term loans and a revolving credit facility, both of which will mature in August 2021.
Closing of the credit facility is subject to completion of definitive documentation and satisfaction of conditions precedent customary for a financing of this nature.
The credit facility will have a first ranking general security interest in the assets of Aurora. The Loans can be repaid without penalty at Aurora’s discretion.
“Access to this non-dilutive capital is a core funding source the Company intends to utilize as it further executes on its strategic growth initiatives.”
“The upsizing of our credit facility to approximately C$360 million and the broadening of the lending syndicate to include additional Schedule 1 Canadian Banks is further recognition that our best-in-class production facilities lead the industry,” said Glen Ibbott, CFO of Aurora.
“Access to this non-dilutive capital is a core funding source the Company intends to utilize as it further executes on its strategic growth initiatives. In addition to cash being generated from operations, the Company also has access to other unsecured debt alternatives, a number of equity investments, and has access to a C$514 million (US$400 million) At-The-Market equity program (“ATM”).”
Aurora, headquartered in Edmonton, Alberta, Canada, has funded capacity in excess of 625,000 kg per annum and sales and operations in 25 countries across five continents.Cannabis Business Worldwide