TSXV: ACB TSXV: HEMP
VANCOUVER and BURNABY, BC, June 8,
2017 /CNW/ - Further to the joint press release
issued today, Aurora Cannabis Inc. (the "Company" or "Aurora")
(TSX-V: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) and Hempco Food
and Fiber Inc. ("Hempco") (TSX-V: HEMP) provide additional
clarification on the call option that Aurora intends to negotiate
with the two majority shareholders of Hempco to acquire, in
conjunction with the Company's participation in Hempco's private
placement, an interest in Hempco of up to 31,872,292 shares
of Hempco.
As announced earlier today, the investment in Hempco, subject to
conditions, may take place in up to three stages:
- Aurora has agreed to loan Hempco $750,000 at an 8% interest rate. The loan is
repayable upon the earliest of: June 8,
2019, a demand by Aurora for repayment, such demand which
can only be made on or after December 21,
2017, or the completion of all or any portion of Hempco's
non brokered private placement of units, as announced by Hempco on
June 7, 2017;
- Upon satisfactory completion of due diligence by Aurora as well
as the satisfaction of a number of other conditions, Aurora as the
sole investor, proposes to participate in a private placement with
Hempco to acquire a total of 10,558,676 units, priced at
$0.3075 per unit, for total gross
proceeds of $3.2 million. Each unit
shall consist of one share and one full warrant. Each warrant
gives Aurora the right to purchase, for a period of two years
following the closing date, one common share of Hempco for a price
of $0.41; and
- Additionally, in order to satisfy one of Aurora's conditions to
participate in Hempco's private placement, Aurora proposes to
negotiate to obtain a call option from the two majority
owners of Hempco to purchase up to 10,754,942 shares
of Hempco from the majority owners as follows:
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a.
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5,377,471 shares at a
price of $0.30 per share; and
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b.
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5,377,471 shares,
priced at the volume weighted average price for the five trading
days preceding the date of acquisition of the second tranche,
subject to a minimum price of $0.45 per share and a maximum
of $0.65 per share.
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Following completion of all three
stages, if completed, Aurora will own 50.1% of Hempco. The option
to acquire the securities would, if exercised, be made through
available exemptions under National Instrument 62 – 104
(Takeover Bids and Issuer Bids).
About Aurora
Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises
Inc., is a licensed producer of medical cannabis pursuant to Health
Canada's Access to Cannabis for Medical Purposes Regulations
("ACMPR"). The Company operates a 55,200 square foot,
state-of-the-art production facility in Mountain View County,
Alberta, and is currently
constructing a second 800,000 square foot production facility,
known as "Aurora Sky", at the Edmonton International Airport, and has
acquired, and is undertaking completion of, a third 40,000 square
foot production facility in Pointe-Claire, Quebec, on Montreal's West Island. Aurora
also recently acquired Pedanios GmbH, a leading wholesale importer,
exporter, and distributor of medical cannabis in the European Union
("EU"), based in Berlin,
Germany. In addition, the company is the cornerstone investor
with a 19.9% stake in Cann Group Limited, the only Australian
company licensed to conduct research on and cultivate medical
cannabis, Aurora's common shares trade on the TSX-V under the
symbol "ACB". Visit www.auroramj.com for more information.
About Hempco
Hempco® is a trusted and respected pioneer, innovator and
provider of premier hemp seed foods for more than 15 years. Hempco®
is committed to a triple bottom line – People, Planet, Profits and
to capitalizing on the Hempco® mandate of "whole crop utilization"
and developing hemp foods, hemp fiber and hemp nutraceuticals, a
"tri-crop" opportunity for producers and processors. Hempco® has
grown its business significantly and is generating value and
profits for shareholders.
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward-looking
statements are frequently characterized by words such as "plan",
"continue", "expect", "project", "intend", "believe", "anticipate",
"estimate", "may", "will", "potential", "proposed" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. These statements are only predictions.
Examples of forward looking statements in this news release include
the parties anticipation that they will receive regulatory and TSXV
approval for the transaction and that the transaction will proceed.
Various assumptions were used in drawing the conclusions or making
the projections contained in the forward-looking statements
throughout this news release. Forward-looking statements are based
on the opinions and estimates of management at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. The Companies are under no obligation,
and expressly disclaims any intention or obligation, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law.
The TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
On behalf of the
Board of Directors,
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AURORA CANNABIS
INC.
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Terry Booth,
CEO
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On behalf of the
Board of Directors,
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RADIENT TECHNOLOGIES
INC.
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Denis
Taschuk
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Prakash
Hariharan
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President and
CEO
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Chief Financial
Officer
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SOURCE Aurora Cannabis Inc.