Aurora Cannabis Inc. Repurchases $22.3 Million in Convertible Senior Notes, Saving $2.6 Million in Annual Interest Payments
LOS ANGELES– Canadian cannabis company Aurora Cannabis Inc. has announced that it has repurchased approximately $22.3 million (US$16.6 million) principal amount of its convertible senior notes (“Notes”) in multiple transactions since the start of April 2023. The total cash cost of these repurchases, including accrued interest, was $16.7 million (US$12.4 million) and $5.3 million (US$4.0 million), satisfied by the issuance of an aggregate of approximately 6.35 million common shares of Aurora. These transactions will save Aurora $2.6 million in annualized interest payments.
The company’s objective in carrying out these transactions is to reduce its debt and annual cash interest costs, demonstrating its commitment to financial discipline. Since December 2021, Aurora has repurchased an aggregate of approximately $385 million (US$286 million) principal amount of its convertible senior notes, resulting in annual cash interest savings of approximately $21 million (US$16 million).
Despite these transactions, Aurora’s balance sheet remains one of the strongest in the Canadian cannabis industry. The company achieved Adjusted EBITDA profitability for the quarter ended December 31, 2022, and it expects to focus on profitable growth in both global medical and Canadian adult-use markets.
Aurora is known for opening the world to cannabis, serving both medical and consumer markets. The company’s adult-use brand portfolio includes Aurora Drift, San Rafael ’71, Daily Special, Whistler, Being, and Greybeard, as well as CBD brands, Reliva and KG7. Medical cannabis brands include MedReleaf, CanniMed, Aurora, and Whistler Medical Marijuana Co. Additionally, Aurora has a controlling interest in Bevo Farms Ltd., North America’s leading supplier of propagated agricultural plants. Aurora’s brands are focused on high-quality cannabis products and are leaders in the medical, performance, wellness, and adult recreational markets worldwide.
It’s important to note that this announcement does not constitute an offer to sell, solicitation of an offer to buy any security, or sale in any jurisdiction where such offering would be illegal.
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