Aurora Cannabis Inc. acquired 19.9% shares of Liquor Stores NA Ltd. as a part of its plan to buy up to 40% of the liquor seller.

Canada's Liquor Stores sold 6.9 million common shares to Aurora at C$15 apiece for gross proceeds of C$103.5 million in a private placement.

In addition, Aurora subscribed for 2.3 million subscription receipts of Liquor Stores at a price of C$15 apiece for aggregate proceeds of C$34.5 million. The proceeds, once released from escrow, will increase the company's ownership in Liquor Stores to about 25%.

Liquor Stores will use the investments to establish and launch a brand of cannabis retail outlets.

Liquor Stores also issued 10,130,000 warrants, each of which can be exercised for a common share of the company for C$15.75 apiece.

Aurora will end up owning 40% of the company if it fully exercises the warrants following the second round of investment.

Further, Liquor Stores issued another 1,750,000 warrants, which Aurora can exercise to maintain its equity stake if the former's debt holders convert their outstanding debentures for shares.

Completion of the additional investment remains subject to the receipt of required approvals.