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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