TSX: ACB CSE: N
EDMONTON and VANCOUVER,
Jan. 2, 2018 /CNW/ - Aurora Cannabis
Inc. (the "Company" or "Aurora") (TSX: ACB) (OTCQX: ACBFF)
(Frankfurt: 21P; WKN: A1C4WM) and
Namaste Technologies Inc. ("Namaste") (CSE: N) (FRANKFURT: M5BQ)
(OTCMKTS: NXTTF) today announced the signing of a binding term
sheet towards a final Private-Label Software Agreement ("Private
Label Agreement"), whereby Namaste will provide Aurora's
wholly-owned subsidiary, CanvasRx Inc. ("CanvasRx") with a
customized version of Namaste's patient acquisition tool,
NamasteMD.com ("NamasteMD"), as well as desktop and mobile
applications for Google Android and Apple iOS platforms. The
companies have 30 days to complete a final agreement.
Private Label Agreement
NamasteMD is an online telemedicine platform for patient
consultation and registration, bringing together Namaste`s tested
technology platform, including certain proprietary authentication
technologies, as well as consultation, education and medical
document issuance processes. Under the terms of the Private Label
Agreement:
- Namaste will provide CanvasRx with a customized,
CanvasRx-branded version of NamasteMD
- Namaste will provide CanvasRx with a two-year exclusivity
period for the private label version of NamsteMD.com in
Canada
- Namaste will initially provide the application for both the
Google Android and Apple iOS platforms
- CanvasRx will require their own doctors and/or nurse
practitioners to operate the platform
- Commercial terms of the agreement are not disclosed
- In consideration of Aurora's assistance for the future
optimization of NamasteMD, Namaste has issued Aurora 500,000 stock
options, exercisable at $3.35 per
common share for 48 months, vesting quarterly over 12 months.
Support Services Agreement
In addition, the companies have also signed a non-binding,
non-exclusive Letter of Intent to complete a final Consultation
& Support Services Agreement ("Consultation Agreement"),
whereby Namaste will provide patient referral services to Aurora,
where applicable under Canada's
Access to Cannabis for Medical Purposes ("ACMPR")
regulations. Under the terms of the Consultation Agreement:
- Namaste shall provide certain patient-focused education and
strain selection services, as well as assistance in preparing the
requisite paperwork (Medical Documentation) for registering
patients with Aurora
- The Agreement is non-exclusive for a one-year term
- Namaste shall provide the services under the agreement on
preferential terms to Aurora
- Commercial terms of the Consultation Agreement are not
disclosed
The agreements further strengthen the strategic ties between the
two companies, who already collaborate on eCommerce (sale of
Namaste-sourced, curated selection of vaporizers through Aurora
website, utilizing Namaste's technology platform), and the
distribution of BC Northern Lights products. Once completed, the
new agreements will provide Namaste with recurring revenues through
the private label platform, while Aurora will be the only licensed
producer able to offer Namaste`s streamlined online patient
acquisition platform under its own (CanvasRx) brand.
Management Commentary
"NamasteMD provides an innovative and efficient extension to our
industry-leading in-person cannabis counseling and education
services provided through CanvasRx," said Terry Booth, CEO. "The new platform will enable
us to extend our industry leading patient care to areas where we
currently have no physical presence. This will allow us to leverage
the strength of both the CanvasRx and Aurora brands, without having
to commit to substantial investments in brick and mortar
facilities. Namaste is a trusted partner with whom we already
successfully collaborate on two promising initiatives, and we look
forward to extending our partnership based on innovation and
customer care excellence."
Sean Dollinger, President and CEO
of Namaste added, "We are thrilled to have Aurora, the industry's
most innovative and dynamic Licensed Producer, as our preferred
strategic partner. Our drive to innovate meets the cannabis
industry`s need for reliable technological solutions to improve
operational efficiencies and expand the customer experience. We are
very proud to be aligned with Aurora's team, and look forward to
executing on our ongoing collaboration."
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 17.23% 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".
About Namaste Technologies Inc.
Namaste is the largest online retailer for medical cannabis
delivery systems globally. Namaste distributes vaporizers and
smoking accessories through e-commerce sites in 26 countries and
with 5 distribution hubs located around the world. Namaste has
majority market share in Europe
and Australia, with operations in
the UK, US, Canada and
Germany, and has opened new supply
channels into emerging markets, including Brazil, Mexico and Chile. Namaste, through its acquisition of
Cannmart Inc., a Canadian based late-stage applicant for a medical
cannabis distribution license (under the ACMPR Program) is pursuing
a new revenue vertical in online retail of medical cannabis in the
Canadian market. Namaste intends to leverage its existing database
of Canadian medical cannabis consumers, along with its expertise in
e-commerce to create an online marketplace for medical cannabis
patients, offering a larger variety of product and a better user
experience.
On behalf of the Boards of Directors
Terry
Booth
|
Sean
Dollinger
|
|
Chief Executive
Officer
|
Chief Executive
Officer
|
|
|
|
|
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 Namaste are under no
obligation, and expressly disclaim 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 or CSE, nor their Regulation Services Provider
(as that term is defined in the policies of Toronto Stock Exchange
and CSE) accept responsibility for the adequacy or accuracy of this
release.
SOURCE Aurora Cannabis Inc.