Proactive Investors - Aurora Cannabis Inc ({{TSX:ACB, shares jumped after it revealed that it had repurchased C$46.6 million (US$34.3 million) of its convertible senior notes at a total cost including accrued interest of $45.6 million (US$33.6 million) in cash, saving $2.6 million in annualized interest payments.
The Edmonton, Alberta-based cannabis company said that after the repurchase, it will have $103 million (US$76 million) of notes outstanding.
The purpose of the transaction, which represents a repurchase of a portion of the notes at a 2.5% discount to par value, was to cut Aurora’s debt and annual cash interest costs to reinforce financial discipline.
Investors reacted to the news, sending shares of Aurora Cannabis up 5.6% to $0.70 on the Nasdaq in afternoon trading.
Aurora has repurchased $366 million (US$269 million) of its convertible senior notes since December 2021, resulting in annual cash interest savings of roughly $20 million (US$15 million). As a result, Aurora's balance sheet remains among the strongest in the Canadian cannabis industry.
Having achieved adjusted EBITDA profitability for the quarter ended December 31, 2022, Aurora says it focused on “profitable growth” in both the global medical and Canadian adult-use markets.
Aurora’s adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, Whistler, Being and Greybeard, as well as CBD brands, Reliva and KG7. The company’s top medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co.
In addition, Aurora has a controlling stake in Bevo Farms Limited which was founded in 1986 and operates 63 acres of greenhouse in British Columbia, making it a top supplier of propagated agricultural plants in North America.