Aurora Cannabis obtains $3-million loan
– Momentum Public Relations – Jan. 27, 2016
Aurora Cannabis Inc. has closed a $3-million secured demand loan. The loan matures two years from the date of closing or on demand. The maturity date of the loan will be accelerated if the company raises new debt, equity or other forms of financing of a minimum of $7.5-million.
A fee of 3 per cent of the gross proceeds of the loan will be payable to the lender. In addition, the company will issue 300,000 share purchase warrants to the lender, exercisable into common shares at a price of 55 cents per share for a period of four years expiring Jan. 25, 2020. The expiry date of these warrants may be accelerated by the company if its shares reach an average closing price of at least $1.10 over a period of 30 days. If any of the warrants expire unexercised, the company shall settle the warrants in cash.
Aurora’s total debt, including the loan, will have a maximum blended interest rate of approximately 6.85 per cent. The net proceeds from the loan will be used for working capital.
The warrants and the common shares underlying the warrants will be subject to a statutory four-month hold period in accordance with applicable Canadian securities laws.
We seek Safe Harbor.