Shares of Aurora Cannabis Inc. were down more than 10 per cent after the cannabis company announced plans to raise $33.8 million in a share offering.
The company says Canaccord Genuity has agreed to buy, on a bought deal basis, 46,250,000 shares of the company at a price of 73 cents per share.
It has also granted Canaccord Genuity an over-allotment option for up to an additional 6,937,500 shares on the same terms. If the over-allotment option is exercised in full, the offering will total $38.8 million.
Aurora says it plans to use the money raised to repay the remainder of its outstanding convertible senior notes at or prior to maturity.
The company says the remainder, if any, will be used for strategic purposes, including potential acquisitions.
Aurora’s stock price was down 13 per cent at 79 cents per share in early trading on the Toronto Stock Exchange.