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Aurora has signed a new deal worth a potential C$38.8m with investment bank Canaccord Genuity in an effort to pay down its debt obligations.
The Canadian cannabis giant has seen its stock increase around 50% this month amid a wider market run based on a number of positive regulatory developments in the US.
However, the news has seen its stock tumble back down around 10%, despite Aurora being able to clear around US$25m of debt.
The ‘bought’ deal, announced yesterday (September 28), will see Canaccord purchase 46.3m shares at C$0.73 each, which represents a discount of around 20% on its previous market close.
This initial sale will net Aurora around C$33.8m, with Canaccord able to purchase a further 6.9m shares if fully exercised.
While the primary use of funds will be to settle debts, Aurora says any remaining funds will be directed towards strategic initiatives, which could include acquisitions.
The Toronto Stock Exchange has yet to approve the deal, but the company expects to close on October 03.
It marks the latest effort by the company to alleviate its debt obligations following a string of transactions throughout August and September to repurchase convertible senior loan notes.