Here's Why Aurora Cannabis Dropped Over 7% Today
Shares of Canadian cannabis grower Aurora Cannabis (NYSE: ACB) dropped today after the company announced a new share offering. The stock was down 7.4% as of 10:45 a.m. EST.
The company is taking the opportunity to raise money after its shares more than doubled over the past three months.
Aurora announced that it will be issuing 12 million new shares, plus additional warrants to purchase shares. The agreement with underwriters is a "bought deal" arrangement, meaning the underwriter agrees to purchase all of the offered units, but terms result in a lower share price. The company agreed to a price of $10.45 per share, or about 13% below recent highs from a week ago.
Source Fool.com
