Aurora Cannabis Files Preliminary Prospectus To Raise Up To $750M

Canadian cannabis company Aurora Cannabis Inc. (NYSE: ACB) announced the filing Tuesday of a preliminary short-form base shelf prospectus with Canadian securities regulators and a corresponding shelf registration statement on Form F-10 with the U.S. Securities and Exchange Commission.

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What Happened

The prospectus and registration statement, when made final or effective, will allow Aurora Cannabis to issue stock offerings, debt securities, subscription receipts, units or warrants for an aggregate value of up to $750 million during a period of 25 months, according to the company. 

The prospectus does not mean that Aurora will offer any securities. If it decides to do so, the company said it will file a related prospectus supplement that outlines the specific terms and the use of the proceeds.

Why It's Important

The filing of the prospectus represents a long-term strategic measure that offers the company flexibility in access to growth capital if or when it's required, Aurora Executive Chairman Michael Singer said in a statement. 

The move comes after the company listed its stock on the NYSE and formed a partnership with activist investor Nelson Peltz, who was appointed as a strategic advisor last month. 

Aurora could also use the shelf prospectus for an at-the-market distribution that would involve selling securities by registered dealers on behalf of the company through the stock exchange.

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