Topics ranging from the role of small producers to global opportunities for Canadian companies, among others, were discussed at MJBizCon’s Passholder Days on Nov. 11. It’s all accessible to you on demand.
Underwriters for Aurora Cannabis’ previously announced in a single day public providing have agreed to buy some 20 million items at $7.50 apiece, the company announced this week, which might internet the corporate $142.four million.
If the over-allotment choice is exercised, the web proceeds would rise to $163.eight million.
The Alberta-based firm says it intends to make use of the proceeds to fund progress alternatives, working capital and different company functions.
Aurora’s stock had greater than doubled within the days earlier than the in a single day providing, “not driven by fundamentals, but instead a combination of retail (fear of missing out) and hedge fund short squeeze,” Jefferies analyst Owen Bennett wrote in a be aware to buyers.
Acknowledging the providing results in additional dilution of the corporate’s shares, Bennett wrote, “you additionally must say it is a shrewd transfer, particularly with the U.S. probably opening up sooner vs later.
“Without cash, getting a foothold in that market will be very difficult.”
Each unit within the providing consists of 1 frequent share and half of 1 share buy warrant. The warrants will likely be legitimate for 40 months following the cut-off date.
The providing – anticipated to shut round Nov. 16 – would eat into Aurora’s just lately filed $500 million short-form base shelf prospectus.
Aurora was not alone in capitalizing on its rising shares this week.
New Brunswick-based Organigram Holdings introduced an underwritten public providing of items for internet proceeds of 57 million Canadian dollars ($44 million).
Net proceeds would rise to $69 million if the over-allotment choice is exercised.
A syndicate of underwriters led by Canaccord Genuity agreed to buy 32.5 million items at a value of CA$1.85 per unit.
Each unit consists of 1 frequent share and half of 1 frequent share buy warrant.
The warrants are exercisable for a interval of 36 months following the cut-off date at an train value of CA$2.50.
The providing is anticipated to shut Nov. 12.
Organigram says it plans to make use of the proceeds to repay debt and for normal company functions.