Creating a Turnkey Cannabis Cultivation
Powerhouse - ALPS (Aurora Larssen Projects Inc.)
TSX: ACB
VANCOUVER, Nov. 23, 2017 /CNW/ - Aurora Cannabis Inc. (the
"Company" or "Aurora") (TSX: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) announced today
that the Company has signed a definitive agreement for the
acquisition of 100% of the issued and outstanding shares (the
"Acquisition") of Larssen Ltd ("Larssen"). The terms of the
transaction are undisclosed, but include performance-based
milestone payments, such as those related to profitability metrics,
as well as certain Aurora standards.
Larssen, a Canadian company that has set the industry standard
in high-tech, automated, environmentally controlled greenhouses for
over 30 years, has consulted on the design, engineering, and
construction oversight of many of the world's most advanced
greenhouse cultivation facilities. Best known for the successful
implementation of cutting-edge automation features, proprietary
design characteristics that generate exceptional yields, and the
use of advanced energy efficient materials and technologies,
Larssen has been involved with over 1,000 projects around the
globe.
Following a thorough review process, Aurora selected Larssen to
design, engineer, and oversee construction of its Aurora Sky
facility, which upon completion is expected to be the largest
capacity and most technologically advanced cannabis facility in the
world, producing ultra-low cost, premium-quality cannabis. Larssen
is currently involved with over 15 cannabis industry clients
globally, including 5 Canadian licensed producers. The Canadian
deals will be vetted by the Company's management team. Any Canadian
project deemed not to be in the best interest of Aurora
shareholders will be notified that ALPS will no longer participate
in such project. We expect this process to take no longer than 3
weeks.
Upon completion of the transaction, Larssen will be integrated
into a newly incorporated subsidiary, Aurora Larssen Projects Ltd.
("ALPS"), focused on providing a unique turn-key service offering
to Aurora and its domestic and international partners, that will
over time provide 360-degree solutions for facility design,
engineering, construction, support, maintenance, security,
regulatory support, cultivation, genetics, as well as provide
consulting and assistance in regard to meeting requirements for
GACP cultivation and EU GMP certification.
Thomas Larssen, the principal of
Larssen, will serve as President of ALPS and will continue to
oversee Aurora's cultivation infrastructure expansion. Management
anticipates that the growth of ALPS will be driven by the continued
rapid evolution of the cannabis industry in Canada and around the globe.
"The acquisition of Larssen is an immediately accretive,
high-margin revenue generating opportunity that also extends our
technological leadership in the cannabis sector," said Terry Booth, CEO. "We know Thomas and his team
very well, as they have been instrumental in the design and
engineering of our revolutionary Aurora Sky facility. This will
help make the integration of Larssen with Aurora seamless. The
establishment of ALPS will add significant capacity to our project
execution team, enabling us to further accelerate the expansion of
our global presence. I look forward to working with Thomas and his
team as we pursue new opportunities going forward."
Differentiating transaction with strong strategic
rationale
- For fiscal 2018 (the 12-month period ending September 30, 2018), Larssen is on pace to
generate approximately $6 million in
revenues, with an EBITDA margin exceeding 40%.
- Through direct ownership and providing a stronger supportive
infrastructure, Larssen will be able to dedicate additional
resources to developing unique technologies exclusively for Aurora,
further extending the Company's industry-leading innovation track
record;
- Given Larssen's reputation and visibility within the industry,
Aurora will gain immediate access to an expanded universe of
international M&A and partnership opportunities;
- Aurora is executing on an aggressive expansion strategy that is
likely to include further construction projects. Through Larssen,
the Company will have secured direct access to the services of the
world's pre-eminent turn-key project team in the cannabis sector,
enabling management to focus on growing Aurora rather than
allocating significant resources to project management, as well as
save considerable project-related expenses going forward.
Thomas Larssen, Principal of
Larssen, added, "We have been at the cutting edge of greenhouse
development for over 30 years, and have never encountered a team
that matches the vision, entrepreneurship and execution as
demonstrated by the people at Aurora. Our decision to join forces
with Aurora in this evolving industry was not difficult. Joining
the Company will allow us to leverage the incredible brand
recognition Aurora enjoys, both within and outside of the cannabis
sector. I believe that the resources, infrastructure and strategic
support available at Aurora will help establish ALPS as the world's
leading horticultural engineering venture, and I look forward to
making my contribution to the continued rapid expansion of the
Company."
Neil Belot, Chief Global Business
Development Officer said, "The acquisition of Larssen, and the
creation of ALPS is another truly differentiating transaction that
exemplifies the Aurora Standard, and separates us from our
competition. Through the integration of our top-calibre teams, we
will rapidly introduce additional high-quality, high-yield,
ultra-efficient cannabis specialized greenhouse and post-harvest
processing facilities to new countries and partners around the
globe."
The Acquisition is subject to the completion of customary
closing conditions and the Company anticipates completing the
Acquisition within the coming weeks.
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".
On behalf of the Board of Directors,
AURORA CANNABIS INC.
Terry Booth
CEO
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"), including, but not
limited to, statements with respect to the closing of the
Acquisition and the performance of the Company, including, but not
limited to, Aurora Larssen Projects Inc. 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. The Company is
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 its Regulation Services Provider (as that
term is defined in the policies of Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Aurora Cannabis Inc.