Aurora Cannabis Inc., the Canadian company opening the world to cannabis, has received approval to transfer the listing of its common shares from the Nasdaq Global Select Market to the Nasdaq Capital Market (the “Transfer”). The Transfer became effective at the opening of business on September 19, 2023, and is expected to allow the Company to seek an additional 180 days to regain compliance with the Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Requirement”). Additionally, Aurora announced today, that it has agreed to repurchase an aggregate of approximately $13.0 million (US$9.6 million) principal amount of its convertible senior notes (“Notes”) at a total cost, including accrued interest, of $13.0 million (US$9.6 million) satisfied by the issuance of an aggregate of approximately 13.5 million Shares. Following completion of these repurchases, Aurora will have approximately $39.6 million (US$29.2 million) of Notes outstanding.
As previously disclosed, Nasdaq advised Aurora on March 24, 2023, that the bid price of the Shares had closed at less than US$1.00 per share over the previous 30 consecutive business days, resulting in a deficiency with the Minimum Bid Price Requirement, and the Company was given a period of 180 calendar days, or until September 20, 2023, to regain compliance with the Minimum Bid Price Requirement. In connection with the Transfer, Aurora has applied for, and expects to receive, an additional 180 calendar day period in which to regain compliance with the Minimum Bid Price Requirement. Approval for the additional 180 calendar day period is conditioned upon Aurora continuing to meet certain Nasdaq minimum listing standards and Aurora notifying Nasdaq of its intention to cure the deficiency.
The Shares continue to trade in the United States under the symbol “ACB” and the trading of the Shares will not be affected by the Transfer. In addition, the Shares continue to be listed on the Toronto Stock Exchange (the “TSX”), and the deficiency does not affect the Company’s status with its TSX listing. Aurora will continue actively monitoring the bid price for its Shares and is considering a range of options in order to cure the deficiency.
The purpose of the Notes repurchase transaction is to further reduce the Company’s debt and annual cash interest costs, reinforcing Aurora’s commitment to achieving the target of positive free cashflow in calendar year 2024. Aurora has repurchased an aggregate of approximately $428 million (US$316 million) principal amount of Notes since December 2021, resulting in total cash interest savings of approximately $32 million (US$24.1 million).
About Aurora
Aurora is opening the world to cannabis, serving both the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company’s adult-use brand portfolio includes Aurora Drift, San Rafael ’71, Daily Special, Whistler, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co. Aurora also has a controlling interest in Bevo Farms Ltd., North America’s leading supplier of propagated agricultural plants.
