Canadian cannabis company Aurora Cannabis Inc. said Wednesday it has reached an agreement with its lenders to extend the maturity of its credit facility to December 31, 2022. The company also said it has ceased operations at the Aurora Sun facility and scaled back production at the Aurora Sky facility to 25 percent of its previous capacity.
Aurora Cannabis’ announcement comes as its rivals Aphria Inc. and Tilray, Inc. said they have agreed to combine their businesses and create the world’s largest cannabis company based on pro forma revenue.
Aurora Cannabis noted that the amended credit facility agreement will transition the facility to a minimum liquidity covenant from a minimum EBITDA covenant, and provide it with the financial flexibility required to execute its business transformation plan.
There are no changes to the commitment amounts under the facility which currently stand at $101.2 million under the term loan and $15 million under the revolver.
Further, Aurora Cannabis said it is moving to a more variable cost structure in cultivation by expanding its network of external supply and scaling back production from its fixed asset network.
“Specifically, in November we closed our Aurora Sun facility and are now scaling back production at Aurora Sky to 25% of its previous capacity. At this level of production, we intend to transform the Sky facility into a high-value…
Original Author Link click here to read complete story..
Canadian cannabis company Aurora Cannabis Inc. said Wednesday it has reached an agreement with its lenders to extend the maturity of its credit facility to December 31, 2022. The company also said it has ceased operations at the Aurora Sun facility and scaled back production at the Aurora Sky facility to 25 percent of its previous capacity.
Aurora Cannabis’ announcement comes as its rivals Aphria Inc. and Tilray, Inc. said they have agreed to combine their businesses and create the world’s largest cannabis company based on pro forma revenue.
Aurora Cannabis noted that the amended credit facility agreement will transition the facility to a minimum liquidity covenant from a minimum EBITDA covenant, and provide it with the financial flexibility required to execute its business transformation plan.
There are no changes to the commitment amounts under the facility which currently stand at $101.2 million under the term loan and $15 million under the revolver.
Further, Aurora Cannabis said it is moving to a more variable cost structure in cultivation by expanding its network of external supply and scaling back production from its fixed asset network.
“Specifically, in November we closed our Aurora Sun facility and are now scaling back production at Aurora Sky to 25% of its previous capacity. At this level of production, we intend to transform the Sky facility into a high-value…
