The Canadian company's executive chairman, Michael Singer, said in a statement that the company has no immediate plans to start raising the new capital but wants to be ready when the time comes.
READ: Aurora ‘takes a step forward’ in cannabis race by adding Peltz as advisor, says Melius Research
"We have introduced this option as a prudent and long-term strategic measure to provide us with flexibility in access to growth capital, if or when required, to continue executing on our global expansion and partnering strategy,” Singer said.
The paperwork, commonly called a Shelf Prospectus in Canada and Registration Statement in the U.S., will enable Aurora to raise capital quickly by selling stock or other securities. Aurora, based in Edmonton, said the $750 million in capital would be raised over a 25-month period when the paperwork is finalized.
The Shelf Prospectus was filed with each Canadian province, except Quebec, the company said. The Registration Statement was filed with US Securities and Exchange Commission. Aurora also is mulling whether to use the Shelf Prospectus to allow for “at the market distribution” -- which permits securities to be sold over time at prevailing market prices.
Aurora Cannabis produces and distributes medical cannabis in 24 countries across five continents.
Shares of Aurora are down nearly 9% to $8.96, partly on concerns over share dilution.
--Written by Patrick Graham--