Aurora Cannabis (TSX: ACB) (NYSE: ACB) will be increasing its recently completed US$400 million at-the-market offering as the company previously indicated earlier this week. However, instead of the expected US$350 million increase for the program, the company will only be increasing the figure by US$250 million.

It’s unclear why Aurora elected to not utilize the full amount remaining in its previously filed prospectus to conducted a renewed ATM program. However, documents filed this morning by the company with Sedar indicate that the company has made arrangements with Cowen & Co as well as BMO Capital Markets to increase the original US$400 million program to that of US$650 million.

Aurora entered into the amended agreement with the sales agents, as well as CIBC World Markets and AltaCorp Capital on April 15, for which the sales agents will collect a 2% commission for any shares sold via the at the market distribution.

As per the amended prospectus filed, Aurora intends to utilize the proceeds from the sale of equity for 1) working capital, 2) potential future acquisitions, 3) debt repayments, and 4) capital expenditures.

It is believed that the program has commenced effective today. The result is that investors will now see an additional US$250 million in selling inevitably coming their way over the coming months, causing further dilution.

Aurora Cannabis last traded at $0.67 on the NYSE.

Information for this briefing was found via Sedi and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.