Saskatchewan Government Rejects CanniMed CEO's
Plea
Aurora Intends to Establish Medical Cannabis
Centre of Excellence in Saskatchewan
TSX: ACB
VANCOUVER, Dec. 11, 2017 /CNW/ - Aurora Cannabis
Inc. ("Aurora") (TSX: ACB) (OTCQB: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) today responds to
the call by CanniMed Therapeutics Inc. ("CanniMed") CEO
Brent Zettl for intervention by the
Government of Saskatchewan to
block Aurora's generous offer to acquire all issued and outstanding
shares of CanniMed.
According to a December 8, 2017
report in the Saskatoon Star Phoenix newspaper, Mr. Zettl sent a
letter to Members of the Saskatchewan Legislative Assembly, asking
for the provincial government to intervene and stop the proposed
transaction, which offers CanniMed shareholders a premium of 57%
over the price at which CanniMed's stock was trading prior to
Aurora's expression of interest. According to the Star Phoenix
article, Mr. Zettl suggested that government support of CanniMed's
management was needed to "keep jobs in the province, [ensure] our
patients receive quality product when they need it, and [generate]
the kind of returns our shareholders deserve."
Mr. Zettl's comments are misleading. CanniMed's facilities in
Saskatchewan are a central element
of Aurora's interest in CanniMed, and Aurora has previously stated
publicly that the Company intends to continue to invest in and
expand operations and employment in Saskatchewan. Such investment will include
accelerating the pace of completion of CanniMed's expansion
project, and elevating the quality of CanniMed's production
practices and standard operating procedures to achieve European
Union (EU) Good Manufacturing Practices (GMP) certification – which
Aurora has already achieved at its Aurora
Mountain facility in Cremona,
Alberta.
With respect to shareholder returns, CanniMed's performance has
been among the poorest in the cannabis sector. CanniMed's share
price increased only 27.5% between its Initial Public Offering on
December 29, 2016 and Aurora's offer
to acquire CanniMed on November 13,
2017. By comparison, Aurora's share price increased by 180%
over the same period.
The Star Phoenix reported that the Government of Saskatchewan rejected the CanniMed CEO's
gambit, with a spokesperson stating that the Ministry of Economy
"views this strictly as a commercial transaction, and will not be
commenting further."
"This is the latest in a series of increasingly desperate
schemes by CanniMed management that would have the effect of
disenfranchising their own shareholders and preventing them from
exercising their fundamental rights," said Terry Booth, CEO of Aurora. "We made a bona fide
offer, featuring a compelling premium that 38% of existing CanniMed
shareholders immediately supported and continue to support through
lockup agreements, including two prominent Saskatchewan-based investment funds. We had
hoped to make this a friendly and collaborative process, but Mr.
Zettl refuses to even pick up the phone or return our calls to have
a discussion. So we took our offer directly to CanniMed
shareholders. In response, CanniMed's management and Board adopted
several poison pills that will have the effect of diluting
CanniMed's stock, draining the company's cash resources and
directly taking money out of its shareholders' pockets. Now,
management, in a last ditch effort, has tried and failed to use the
provincial government to keep them in control and protect them from
their own shareholders. That's not what I call acting in the best
interests of their shareholders."
"We have very ambitious plans for CanniMed's footprint in
Saskatchewan, including the
establishment of a medical cannabis centre of excellence, supported
by significant additional investment, employment and local economic
development," added Mr. Booth. "It's time for Mr. Zettl to step
aside and allow CanniMed shareholders and the Province of
Saskatchewan to benefit from the
Aurora-CanniMed combination and the creation of a powerhouse leader
in the global cannabis sector."
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, as well as is completing a fourth facility
in Lachute, Quebec through its
wholly owned subsidiary Aurora Larssen Projects Ltd.
In addition, the Company holds approximately 19.18% of the
issued shares 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 22.9% 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
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Email: assistance@laurelhill.com
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SOURCE Aurora Cannabis Inc.