Aurora's Plan For $125M Public Offering Further Tanks Stock, , on November 11, 2020 at 5:32 am

By
On November 11, 2020
Tags:

Aurora Cannabis Inc (NYSE: ACB) shares plunged in the after-hours session Tuesday as the company announced plans for a $125 million public offering.What Happened: Aurora plans to price each unit of the fresh issue at $7.50, which will consist of one common share of the company and one-half portion of a share purchase warrant. A whole warrant will entitle the holder to buy one common stock at an exercise price of $9 per warrant share. These warrants would have a maturity period of 40 months from the date of offer close.The company is yet to receive the approvals from the New York Stock Exchange and Toronto Stock Exchange and would finalize the terms of the offering at the time of pricing.Aurora has engaged BMO Capital Markets (NYSE: BMO) and ATB Capital Markets as the book runners and the underwriters are expected to be granted 15% over-allotment options exercisable within 30 days from the day of the offering’s closure.Why Does It Matter: Aurora stock was on a rebound as of Monday, gaining 87% since last Wednesday, or about 67% in the previous 30-day period.Jeffries analyst Owen Bennett believes that the recent upticks in Aurora’s stock should not be read as “overly encouraging,” MarketWatch reported. Jefferies issued a hold recommendation for Aurora with a price target of CAD 6.90.Bennett drew his inference based on Aurora’s mixed sales numbers and its shifting focus to the Cannabis 2.0 products. Aurora reported net revenue of CAD 67.8 million ($52.3 million) in the quarter ended Sept. 30.The EBITDA loss for 2021 Q1 was at CAD 57.9 million, with a cash balance of CAD 250 million as of Nov. 6. The Daily Special segment, a key contributor to the overall revenue, declined by $3.9 million.Price Action: After a 26.16% downward spiral during regular trading hours, ACB tanked another 16.39% during Tuesday’s after-hours session at $6.94 per share.Photo courtesy: Lea-Kim via WikimediaSee more from Benzinga * Click here for options trades from Benzinga * Adobe’s Plans To Strengthen Its Experience Cloud Segment With .5B Workfront Acquisition * Nikola, Founder Trevor Milton Subpoenaed By DOJ(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.,

Aurora's Plan For $125M Public Offering Further Tanks StockAurora Cannabis Inc (NYSE: ACB) shares plunged in the after-hours session Tuesday as the company announced plans for a $125 million public offering.What Happened: Aurora plans to price each unit of the fresh issue at $7.50, which will consist of one common share of the company and one-half portion of a share purchase warrant. A whole warrant will entitle the holder to buy one common stock at an exercise price of $9 per warrant share. These warrants would have a maturity period of 40 months from the date of offer close.The company is yet to receive the approvals from the New York Stock Exchange and Toronto Stock Exchange and would finalize the terms of the offering at the time of pricing.Aurora has engaged BMO Capital Markets (NYSE: BMO) and ATB Capital Markets as the book runners and the underwriters are expected to be granted 15% over-allotment options exercisable within 30 days from the day of the offering’s closure.Why Does It Matter: Aurora stock was on a rebound as of Monday, gaining 87% since last Wednesday, or about 67% in the previous 30-day period.Jeffries analyst Owen Bennett believes that the recent upticks in Aurora’s stock should not be read as “overly encouraging,” MarketWatch reported. Jefferies issued a hold recommendation for Aurora with a price target of CAD 6.90.Bennett drew his inference based on Aurora’s mixed sales numbers and its shifting focus to the Cannabis 2.0 products. Aurora reported net revenue of CAD 67.8 million ($52.3 million) in the quarter ended Sept. 30.The EBITDA loss for 2021 Q1 was at CAD 57.9 million, with a cash balance of CAD 250 million as of Nov. 6. The Daily Special segment, a key contributor to the overall revenue, declined by $3.9 million.Price Action: After a 26.16% downward spiral during regular trading hours, ACB tanked another 16.39% during Tuesday’s after-hours session at $6.94 per share.Photo courtesy: Lea-Kim via WikimediaSee more from Benzinga * Click here for options trades from Benzinga * Adobe’s Plans To Strengthen Its Experience Cloud Segment With .5B Workfront Acquisition * Nikola, Founder Trevor Milton Subpoenaed By DOJ(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road
#12-01 Capital Tower
Singapore 068912

New York

Coming Soon!

Dubai

Coming Soon!

Market Coverage