VANCOUVER, Oct. 20, 2016 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (TSXV: ACB) (OTCQB: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) announced today that the Company has elected to exercise its right under the indenture (the "Indenture") governing the Company's 10.0% unsecured convertible debentures due March 28, 2018 (the "Debentures") to convert (the "Conversion") all of the principal amount outstanding of the Debentures and unpaid accrued interest thereon up to November 23, 2016 into common shares of the Company (the "Common Shares"). Pursuant to the terms of the Indenture, the Company may force the conversion of the Debentures at the conversion price of $1.15 per Common Share when the VWAP of the Common Shares on the TSX Venture Exchange (the "Exchange") for 10 consecutive trading days equals or exceeds $2.00.
As of close of markets October 20, 2016, the VWAP of the Common Shares on the Exchange for 10 consecutive trading days equals $2.15. The Conversion is scheduled to be effective November 23, 2016.
Pursuant to the terms of the Indenture, the directors of the Company have determined that, on the Conversion, holders of Debentures will receive, for each $1,000 amount of Debentures and outstanding interest thereon, 869.5652 Common Shares. Therefore, on November 23, 2016, the estimated remaining total of $5 million of Debentures and interest thereon outstanding will be converted into approximately 4,409,767 Common Shares. The remaining $10 million of Debentures were converted effective October 18, 2016.
"We are very pleased to convert these Debentures, providing Aurora with an additional $5 million in permanent capital, further improving our balance sheet and our industry-leading cash position," said Terry Booth, CEO.
The Company has provided the holders of the Debentures 30 days advance written notice of its intent to exercise the Conversion.
Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR) and operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, Canada. Aurora trades on the TSX Venture Exchange under the symbol "ACB".
On behalf of the Board of Directors,
AURORA CANNABIS INC.
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Aurora Cannabis Inc.
For further information: Cam Battley, Senior VP, Communications and Medical Affairs, +1.905.864.5525, [email protected], www.auroramj.com; Marc Lakmaaker, NATIONAL Equicom, [email protected], +1.416.848.1397