The filing was made with the securities regulators in each province of Canada – except for the Province of Quebec – and a corresponding shelf registration statement with the United States Securities and Exchange Commission.
Why Aurora Filed Prospectus and Registration Statement
Aurora Cannabis has no immediate plans to raise capital and said it made the filing is “a natural evolution for the company as it rapidly matures “into a global and profitable organization.”
“Although we have no immediate intention of drawing capital against this Shelf Prospectus, we have introduced this option as a prudent and long-term strategic measure to provide us with flexibility in access to growth capital, if or when required, to continue executing on our global expansion and partnering strategy,” Executive Chairman Michael Singer said in a statement.
“With our recent listing on the NYSE, our successful financing in January 2019 led by U.S. institutional investors, and as we work with Nelson Peltz to explore potential partnership opportunities, this filing is a natural evolution for our company as we rapidly mature into a global and profitable organization,” Singer added.
Aurora Cannabis noted that the final shelf prospectus and registration statement, whenever made, will allow it to make offerings of common shares, debt securities, subscription receipts, units, warrants or any combination of up to US$750 million during the 25-month period.
Should the company decide to offer securities, the specific terms, including the use of proceeds, will be reported in a related prospectus supplement to the shelf prospectus, which will be filed with the applicable Canadian authorities and the SEC.
Further, Aurora Cannabis said it may consider the use of the shelf prospectus and subsequent prospectus supplement to allow for an “at the market distribution,” which provides for securities to be sold by registered dealers through the stock exchange at prevailing market prices at the time of sale.
Aurora Cannabis confirmed that it hasn’t made any agreement for an at-the-market distribution.