In light of consistently disappointing quarterly financial reports, even larger licensed producers such as Aurora Cannabis Inc. (NYSE: ACB; TSX: ACB) are currently seeking an influx of cash to keep operations moving forward.
After initially announcing plans to upsize an existing credit facility earlier in the summer, Aurora has now closed on that deal worth a total of $360 – $400 million.
Bumping up from the initial $200 million credit facility provided by the Bank of Montreal, the expanded lending deal now includes an extra $160 million in term loans, along with an option to increase that amount by an additional $40 million down the line.
Announcing the closing of the credit facility deal this morning, Aurora’s Chief Executive Officer Terry Booth issued this statement to shareholders:
This isn’t Aurora’s only capital raising exercise so far in September, having recently raised more than $86 million by selling all shares of fellow Canadian cannabis company The Green Organic Dutchman at a price of $3.00 a share.
Aurora’s own stock is up slightly over the past two weeks, currently trading at $6.12 a share, although that price remains down from its position this same time last month.
As with the overwhelming majority of both U.S. and Canadian cannabis companies, Aurora has taken a major hit on the trading price since quarterly financial reports came out in the spring, falling from a 2019 high of $9.94 back in March.
Continued expansion to fuel investor confidence has been a major focus on larger Canadian producers, with Aurora taking a multi-pronged approach that includes athletic CBD research, new outdoor grow operations for increased supply, as well as international medical sales.
Like the rest of the Canadian cannabis industry, Aurora is additionally gearing up for the launch of legalized edible and vape sales later this year after finalized federal regulations are handed down from Health Canada next month.