Canadian medical marijuana producer Aurora has made two major announcements this week, appointing Barry Fishman to its board of directors and revealing $25 million of convertible debentures.
Fishman, the CEO of international pharmaceutical company Merus Labs, will act as an independent director on the board and has previously served on the board of canna-businesses Canopy Growth Corporation and Bedrocan Cannabis Corp.
Terry Booth, CEO of Aurora, lauded Fishman’s marketing, finance and capital markets experience.
“His network and reputation, along with his wise judgment, will serve the company and our shareholders well as we continue on our rapid growth trajectory, which includes expanding our production capacity, transitioning to profitable operations, and further establishing our leadership position in the Canadian cannabis industry,” Booth said in a press release announcing Fishman’s appointment.
The deal grants Fishman options to acquire 350,000 common stock shares.
According to Booth, the financing deal places Aurora in “an extremely powerful financial position” with a current cash balance exceeding $45 million.
“We are now one of the best capitalized companies, with one of the strongest balance sheets in the cannabis sector,” he said in a release.
A convertible debenture is a loan which can be converted into stock. Along with the new offering, Aurora converted $10 million of pre-existing convertible debentures, which bear 10 percent interest per year, into approximately 8,695,652 common stock shares. The offer is expected to close on Oct. 25.
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