Aurora Cannabis Inc.
said on Tuesday that about 94% of the owners of C $ 230 million ($ 174 million) of 5% unsecured convertible debt that matures in March 2020 has chosen to convert debt into equity. The company said last week that it would offer all note holders the opportunity to voluntarily convert them to a modified early conversion rate to be determined using a modified early conversion rate equal to a 6% discount over the stock's five-day volume weighted average trading price on the Canadian and US Stock Exchange. The move weighed heavily on the stock as the transaction is expected to be dilutive. Aurora announced the announcement as it had lower-than-expected earnings and said it stopped construction of some of its facilities to save money. The stock was slightly lower in premarket trading, but has shed 38% of its value in the month to date. ETFMG Alternative Harvest ETF
MJ, + 1.92%
has fallen 18% in the same timeframe, while the S&P 500
has received about 5%.