Aphria (TSX: APHA) (NYSE: APHA) is planning to offer US$300 million of convertible senior notes due 2024.

The company intends to grant to the initial purchasers of the notes an option, exercisable within 30-day period, to purchase up to an additional US$45 million of notes.

The notes will be senior unsecured obligations of Aphria and accrue interest payable semi-annually in arrears. The notes will be convertible in certain circumstances into cash, Aphria common shares or a combination of cash and common shares, at the company’s election.

The interest rate, initial conversion rate, repurchase or redemption rights and other terms of the notes will be determined at the time of pricing of the offering, Aphria said in a statement.

The company intends to use the net proceeds to support its international expansion initiatives, for future acquisitions and for general corporate purposes, including working capital requirements, in jurisdictions where federally and nationally legal.

The offering is subject to market conditions and other factors, according to the company.