Aurora Cannabis Inc. will make a C$10 million investment in cannabis retailer High Tide Inc. through a brokered private placement.
Edmonton, Alberta-based Aurora will receive 10,000 senior unsecured convertible debentures at C$1,000 apiece, bearing an interest rate of 8.5% per annum. The total debentures will be convertible into 13,333,333 shares of High Tide at 75 Canadian cents per share.
Aurora CEO Terry Booth said the transaction will provide exposure to High Tide's two retail store concepts to be launched across Canada, as well as other cannabis culture brands of the Calgary, Alberta-based retailer, according to a news release.
Earlier in December, Aurora said it was going to acquire Mexican medical cannabis distributor Farmacias Magistrales SA.