2 Financings You Need to Know About This Week (May 22-27)

May 27, 2022 05:02 PM PST

1. Aurora Cannabis Inc. (TSX-V: ACB) 

  • Gross Proceeds: US$150 million
  • Sector: Cannabis
  • Units issued: 61.2 million
  • Type: Special units
  • Price: US$2.45
  • Warrants: Full; US$3.20; Three years
  • Agents: Canaccord Genuity, BMO Capital Markets
  • Use of Proceeds: General corporate purposes

Company breakdown:

  • Cannabis giant that has been on the decline as weed loses investor favor
  • Shares plummeted $1.33 since the announcement of the private placement

2. Tinka Resources Ltd. (TSX-V: TK)

  • Gross Proceeds: $11 million
  • Sector: Metals
  • Units issued: 40.79 million
  • Type: Common share
  • Price: $0.22
  • Warrants: None
  • Agents: Non-brokered
  • Use of Proceeds: Project development

Company breakdown:

  • Junior miner with the flagship Ayawilca zinc-silver project in Lima, Peru
  • This private placement is with Nexa Resources, the largest zinc producer in Peru. Following the agreement, Nexa will own 18.2 percent of the company
  • Proceeds from the private placements will be used to explore Ayawilca
  • Shares jumped precipitously in anticipation of the private placement

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