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Edmonton, Alberta-based Aurora Cannabis has arranged new financing via a “bought deal.”
What is that, and is it important to all cannabis entrepreneurs or just the large operators?
Let’s take the deal apart to find out.
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Aurora has a current market cap of about $400 million. Its trailing, 12-month revenue was $225 million; it bled out $1.2 billion on its bottom line.
The financing, with gross proceeds of about $172.5 million, was arranged by Canaccord Genuity and BMO Capital Markets.
The syndicate (or group of financiers) agreed to buy 61.2 million special “units” – plus another 9.2 million through an over-allotment option – priced at $2.45 each. Each unit will include one common share and one warrant.
A “warrant” is a tradable security that entitles its
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