The Canadian company defining the future of cannabinoids worldwide, Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) drops 10.10% in early trading session on Friday as the company said that it repurchased about $31.3 million principal amount of its convertible senior notes  for a total cost of $29.8 million (US$21.8 million) in cash, including accrued interest.
The transaction’s goal was to lower the Company’s debt and yearly cash interest payments by repurchasing a part of the Notes at a 5.45% discount to par value. Annual cash interest savings from Notes repurchases beginning in Q3 2022 now total about $11.9 million (US$8.7 million).
Aurora’s balance sheet remains among the best in the industry, with over $380 million in cash and cash equivalents (including approximately $52 million in restricted cash) inclusive of the transaction announced today, and the Company reiterates its forecast of attaining a positive Adjusted EBITDA run rate by December 31, 2022.
This announcement is not an offer to sell or a solicitation of an offer to purchase any securities, and it shall not be construed as an offer, solicitation, or sale in any area where such offering would be prohibited.
Aurora Cannabis Inc. (ACB) recently reported that its financial and operational results for the fourth quarter and fiscal year ended June 30, 2022.
Chief Executive Officer of Aurora, Miguel Martin stated that They continue to increase the long-term value of their distinctive global cannabis business by discovering highly lucrative development prospects fast, investing capital with discipline, and rationalizing their cost structure. They continue to be the leading Canadian LP in worldwide medical cannabis revenues, and they anticipate that this high margin, high growth area will be a significant driver of future profitability. They foresee a positive adjusted EBITDA run rate by December 31, 2022, and they are on track to meet their previously disclosed cost-cutting objectives of up to $170 million in yearly savings. Furthermore, their improved financial sheet allowed them to buy $155.3 million of convertible notes in Q4 2022, while also allowing them to explore smart and accretive acquisitions.
