Partnership Capitalizing on Hemp and CBD
Opportunities
TSX: ACB
TSX-V: HEMP
VANCOUVER, Nov. 23, 2017 /CNW/ - Aurora Cannabis Inc. (the
"Company" or "Aurora") (TSX: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) and Hempco Food
and Fiber Inc. ("Hempco") (TSX-V: HEMP) are pleased to announce
that the companies have completed a non-brokered private placement
for gross proceeds of $3.2
million.
In relation to the placement, which was described in more detail
in a joint news release dated September 18,
2017, Hempco issued 10,558,676 units, at $0.3075 per unit, to Aurora. Each Unit
consists of one Hempco common share and one non-transferable common
share purchase warrant. Each Warrant entitles Aurora to purchase
one additional Hempco Share at a price of $0.41 until the second anniversary of the closing
date. Each Warrant includes an acceleration clause, providing
that if at any time beginning four months and one day after the
date the warrant was issued the volume weighted average price per
Hempco share on the TSX Venture Exchange ("TSXV") exceeds
$0.65 for a period of 30 consecutive
calendar days, Hempco will have a limited right to accelerate the
expiration date of the Warrants.
The securities issued in connection with the private placement
are subject to a four-month hold period under applicable securities
laws. Consequently the placement, Aurora now holds approximately
33.6% of Hempco on a fully-diluted basis. Additionally, Aurora has
an option to purchase further shares from two of Hempco's principal
owners, which, upon full exercise, would increase Aurora's take in
Hempco to over 50%.
Management Commentary
"We are very pleased to now be a major investor in, and partner
with Hempco", said Terry Booth, CEO
of Aurora. "The finalization of this investment coincides
with the proposed Health Canada regulations that, once implemented,
will allow Hempco to pursue its whole-plant-utilization vision, and
launch new product lines. Our partnership will also allow both
companies to benefit from being able to source this material to
produce high quality and lower cost CBD products for sale in
Canada and for
export."
Charles Holmes, CEO of Hempco,
added "The completion of the Private Placement marks a monumental
milestone for Hempco and cements the relationship with Aurora as
its strategic partner. We are now able to complete our new
processing facility, implement our go-to-market strategy for new
products, including our new line of animal feed products, and
access new sales channels to further accelerate growth. With the
proposed changes in legislation and the resources available to
Hempco under the strong and supportive partnership with Aurora, we
will now be able to dramatically accelerate the implementation of
our commercial strategy and pursue growth aggressively, both within
Canada and globally."
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, known as "Aurora
Mountain", a second 40,000 square foot high-technology production
facility known as "Aurora Vie" in Pointe-Claire, Quebec on Montreal's West Island, and is currently
constructing an 800,000 square foot production facility, known as
"Aurora Sky", at the Edmonton
International Airport.
In addition, the Company holds approximately 9.6% of the issued
shares (12.9% on a fully-diluted basis) in leading extraction
technology company Radient Technologies Inc., based in Edmonton, and is in the process of completing
an investment in Edmonton-based
Hempco Food and Fiber for an ownership stake of up to 50.1%.
Furthermore, Aurora is the cornerstone investor with a 19.9% stake
in Cann Group Limited, the first Australian company licensed to
conduct research on and cultivate medical cannabis. Aurora also
owns Pedanios, a leading wholesale importer, exporter, and
distributor of medical cannabis in the European Union, based in
Germany. The Company offers
further differentiation through its acquisition of BC Northern
Lights Ltd. and Urban Cultivator Inc., industry leaders,
respectively, in the production and sale of proprietary systems for
the safe, efficient and high-yield indoor cultivation of cannabis,
and in state-of-the-art indoor gardening appliances for the
cultivation of organic microgreens, vegetables and herbs in home
and professional kitchens. Aurora's common shares trade on the TSX
under the symbol "ACB".
About Hempco
For more than 12 years Hempco has been a trusted and respected
pioneer, innovator and provider of premier hemp seed foods. Hempco
is committed to developing hemp foods, hemp fiber and hemp
nutraceuticals, a "tri-crop" opportunity for producers and
processors. Hempco is expanding its processing ability to meet
global demands in a 56,000sq. ft. facility located at Nisku, Alberta. Hempco's common shares
trade on the TSX Venture Exchange under the symbol "HEMP". Hempco®
has grown its business significantly and is generating value and
profits for shareholders.
On behalf of the Board of Directors
Terry
Booth
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Charles
Holmes
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Chief Executive
Officer, Aurora
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Chief Executive
Officer, Hempco
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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.
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. Aurora and Hempco 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.
Neither TSX, nor TSX-V, nor their Regulation Services
Provider (as that term is defined in the policies of Toronto Stock
Exchange and TSX Venture Exchange) accept responsibility for the
adequacy or accuracy of this release.
SOURCE Aurora Cannabis Inc.