Aurora Cannabis Saves $2.6 Million in Interest Payments Through Repurchase of Convertible Senior Notes

1.2 min readPublished On: March 30th, 2023By

LOS ANGELES– Canadian cannabis company Aurora Cannabis Inc. has announced that it has repurchased approximately $46.6 million (US$34.3 million) worth of its convertible senior notes. The Notes were repurchased at a total cost, including accrued interest, of $45.6 million (US$33.6 million) in cash, resulting in savings of $2.6 million in annualized interest payments. The purpose of the transaction was to reduce the company’s debt and annual cash interest costs, demonstrating Aurora’s commitment to financial discipline. The company has repurchased around $366 million (US$269 million) principal amount of its convertible senior notes since December 2021, which has resulted in annual cash interest savings of around $20 million (US$15 million).

Following completion of this repurchase, Aurora will have approximately $103 million (US$76 million) of Notes outstanding. Despite the reduction in debt, Aurora’s balance sheet remains one of the strongest in the Canadian cannabis industry. The company had achieved the goal of Adjusted EBITDA Profitability for the quarter ended December 31, 2022, and Aurora expects to continue focusing on profitable growth in both global medical and Canadian adult use markets.

The Notes were repurchased at a 2.5% discount to par value, which is the nominal value of a bond or stock. The company’s balance sheet will be further strengthened by this transaction, which is in line with Aurora’s ongoing efforts to improve its financial position. The announcement does not constitute an offer to sell, solicitation, or sale in any jurisdiction in which such offering would be unlawful.

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