EDMONTON — Aurora Cannabis Inc. is planning to spin off its Australis Capital subsidiary as a separate entity that would focus primarily on investing in the U.S. cannabis and real estate sectors.
The spin-off will be achieved by distributing shares and warrants of the new company — to be listed on the Canadian Security Exchange.
Aurora shareholders resident in Canada will receive the shares at no cost to them while non-resident shareholders of Aurora will receive cash, net of withholding taxes, instead of equity in Australis.
Australis also intends to issue 75 million shares at 20 cents each through a private placement for gross proceeds of $15 million.
Australis also receives $500,000 from Aurora, as advance payment for warrants to buy Australis stock for up to 10 years.
Aurora is one of Canada’s biggest publicly traded cannabis producers, headquartered in Edmonton.
Companies in this story: (TSX:ACB)
The Canadian Press
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