Aurora Stock Plunges On $25M Bought Deal To Repay Convertible Debt
Portfolio Pulse from Nina Zdinjak
Aurora Cannabis Inc. (NASDAQ:ACB) has entered into an agreement with Canaccord Genuity to sell 46.25 million company shares at a price of CA$0.73 per share, generating gross proceeds of approximately CA$33.76 million. The company plans to use the proceeds to repay its outstanding convertible senior notes, which amount to approximately $25 million. The offering is expected to close on October 3, 2023. Following the news, Aurora shares were trading 14.17% lower.
September 28, 2023 | 3:18 pm
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Aurora Cannabis's stock price dropped 14.17% following the announcement of the share sale to repay debt. The company's decision to sell shares could dilute existing shareholders' equity.
The announcement of the share sale to repay debt has led to a drop in Aurora Cannabis's stock price. This is likely due to concerns among investors about the dilution of existing shareholders' equity. The company's decision to repay its debt could also be interpreted as a sign of financial distress, which could further negatively impact the stock price.
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IMPORTANCE 80
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