Aurora prices US$300m in convertible senior notes to fuel expansion in Canada and beyond

Aurora Cannabis Inc. has priced its previously announced offering of convertible senior notes due 2024.

The Company will issue US$300.0 million aggregate principal amount of notes, or US$345.0 million aggregate principal amount if the initial purchasers’ over-allotment option is exercised in full. The notes will be issued at par value.

Aurora said it expects to use the net proceeds from the offering of the notes to support its Canadian and international expansion initiatives, as well as future acquisitions and for general corporate purposes, including working capital requirements.

The notes will be unsecured and will mature on February 28, 2024. The notes will bear cash interest semi-annually at a rate of 5.5% per annum.

The initial conversion rate for the notes will be 138.37 common shares per US$1,000 principal amount of notes, equivalent to an initial conversion price of approximately US$7.23 per common share.

The initial conversion rate represents a premium of approximately 10.0% on Aurora’s common share closing sale price on the New York Stock Exchange yesterday (January 17) and is subject to adjustment in certain events.

Upon conversion, the notes will be settled in cash, Aurora common shares or a combination of cash and Aurora common shares, at Aurora’s election.

Aurora will have the right to redeem the notes in certain circumstances after February 28, 2022 at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest.

Holders will also have the right to require Aurora to repurchase their notes upon the occurrence of certain customary events at a purchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest.

The offering of notes is expected to close on or about January 24, 2019, subject to customary closing conditions.Cannabis Business Worldwide

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