Aurora Cannabis Inc. (ACB - Get Report) shares rose 7% to $6.62 by the end of trading Thursday after the company announced that it closed its previously announced offering of 5.5% convertible senior notes due 2024, raising proceeds of $345 million in the process.
"These convertible notes offer Aurora the flexibility and optionality to settle the entire principal amount of the notes in the future for cash, shares, or combination thereof," said Aurora CEO Terry Booth. "The transaction signals confidence in our expected future performance and recognition that we have deployed our shareholders' capital in an intelligent way."
Aurora plans to use the proceeds from the offering for international expansion initiatives and future acquisitions as well as general corporate purposes like working capital.
The initial conversion rate for the notes is 138.37 common shares per $1,000 principal amount of notes, which is equivalent to about $7.23 per common share.