Canadian producer Aurora Cannabis submits $1 billion shelf prospectus

Canadian producer Aurora Cannabis submits $1 billion shelf prospectus

Bethan Rose Jenkins, Cannabis News Writer/Editorial

One of the largest and fastest growing cannabis companies on the planet, Aurora Cannabis, has filed a preliminary short-form base shelf prospectus. According to details of the prospectus, Aurora plans to raise a whopping $1 billion by issuing securities over the course of 25 months.

Based on a news release published on Wednesday, March 10, Edmonton, Alberta-based Aurora will gain “maximum flexibility to pursue strategic initiatives, which may include acquisitions or partnerships pursuant to the company’s previously stated global growth strategy.” 

Recent fiscal reports published by the Canadian cannabis giant show that Aurora was holding on to approximately CAD $565 million (USD $447.6 million) of cash-on-hand by the time its second quarter concluded in February.

Filed with both the Canadian securities regulators and U.S. Securities and Exchange Commission, Aurora’s $1 billion short-form base shelf prospectus, once finalized, will enable the company to sell the following types of securities:

  • Common shares
  • Debt securities
  • Options
  • Subscription receipts
  • Warrants.

AC’s competitor Canopy Growth expects to raise double the amount

Aurora’s rival, Canopy Growth, also recently filed a preliminary short-form base shelf prospectus. However, Aurora has pulled the short straw this time around, with Canopy’s February prospectus pegged at $2 billion.

Nonetheless, Aurora has remained proactive in its efforts to remain afloat in the cut-throat cannabis industry. Back in January, Aurora managed to raise $125 million through a deal specifically focused on financing general business activities, which the company says may be inclusive of “opportunistically reducing debt.” 

In addition to this, November of last year saw the company issue a bulk of shares. Pot stock investors can find the company trading under the ticker “ACB” on the Toronto Stock Exchange and the New York Stock Exchange. 

News of the company’s prospectus seems to have made an impact on its position in the stock market. On Thursday, March 11, shares of “ACB” advanced 7.51 percent to $10.59. The company closed $9.09 below its 52-week high of $19.68, which the company scored on May 18, 2020.

You can view Aurora’s preliminary short-form base prospectus by clicking here

AC is selling one of its cannabis cultivation greenhouses

Also in recent news, Aurora Cannabis is preparing to sell one of the grow houses inside which it churns out medicinal-grade plants. A recent report indicates that AC will go down in Canadian cannabis producer history for carrying out the largest greenhouse sale.

To-date, Aurora has poured approximately CAD $260 million (USD $205 million) into its cannabis greenhouse. Soon, the producer hopes to construct a state–of-the-art medical-grade greenhouse facility perched on a 1.7 million square foot complex in the Medicine Hat region of Alberta.

Based on details of the latest deal, the main building – despite the fact that the construction is only partially complete – extends over 1.4 million square feet of space. Whoever ends up purchasing AC’s greenhouse must set aside enough money to Finish the project; a price that will be contingent on the facility’s purpose.