Aurora Cannabis Shares Jump 18% on Convertible Notes Repurchase
By Adriano Marchese
Aurora Cannabis shares jumped in early trading Monday after the company said that it has repurchased 12.3 million Canadian dollars ($9 million) worth of its convertible senior notes to reach positive cash flow targets next year.
At 9:36 a.m. ET, shares were trading more than 18% higher at C$0.85.
The Canadian cannabis company said it has repurchased the principal amount of its convertible senior notes through multiple transactions between mid-August and Friday.
Aurora said the decision to reduce its debt also was to help reduce its annual cash interest costs as it seeks to reach a target of positive cash flow next year. From this transaction, it expects to save about C$660,000 in annualized interest payments.
The amount includes accrued interest, and was satisfied through the issue of 20.1 million of its common shares.
Aurora said it has about C$53 million of notes outstanding.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
September 11, 2023 09:59 ET (13:59 GMT)
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