Aurora reported stockholders of 94% (worth roughly $230M) of its convertible debentures—bonds paying 5% interest that may be converted to stocks at a fixed rate—agreed to a company plan to offer 6% discounts on prematurely converting their debentures to stocks. The deal will help lower Aurora’s debt–albeit at the risk of diluting the company’s stock.
Newswire, The Deep Dive, Market Realist

Analysts have been sounding the alarm about the predominance of risky convertible debt for some time. Unless the market rises and companies flourish, convertible debentures can shackle firms to punishing interest.
Globe and Mail

Cannabis companies do not have a lot of financing options, so many have concluded risky financing is better than none.
Globe and Mail

Quick Hits

  1. Police in Saint John, New Brunswick, are following Ontario’s lead by prosecuting landlords who own properties in which unlicensed REC stores are located.
    CBC New Brunswick