Planned 1,000,000 Square Foot High-Tech
Facility Will Establish "Aurora Nordic Cannabis"
as Europe's Largest Cannabis
Producer
TSX: ACB
EDMONTON, Jan. 4, 2018
/CNW/ - Aurora Cannabis Inc. ("Aurora") (TSX: ACB) (OTCQB: ACBFF)
(Frankfurt: 21P; WKN: A1C4WM)
today announced that the Company has signed a binding term sheet
for the formation of a joint venture ("JV") with Alfred Pedersen & Søn ("APS"), pursuant to
which Aurora will ultimately own a 51% interest in Aurora Nordic
Cannabis A/S, the joint venture company, which is based in
Odense, Denmark. Aurora and APS
anticipate completing the final agreement shortly, governing the
formation of the joint venture, subsequent to which Aurora Nordic
will commence construction of an ALPS (Aurora Larssen Projects Ltd)
designed, 1,000,000 square foot high-technology, fully automated
cannabis production facility.
APS received its license to cultivate cannabis
from Lægemiddelstyrelsen, Denmark's Medicines Agency, effective
January 1, 2018. This gives Aurora
Nordic a major advantage as one of few companies with a license to
cultivate in Europe.
The new facility will be largely similar to Aurora`s flagship
facility, Aurora Sky, with a projected production capacity in
excess of 120,000 kg per annum. Construction will be phased, with
cultivation commencing upon completion of the first 200,000 square
feet, which is anticipated in the third quarter of calendar 2018.
The new facility, upon completion, would establish Aurora Nordic as
the continent`s largest producer of cannabis. Furthermore, through
Aurora`s wholly owned subsidiary, Pedanios GmbH, Aurora Nordic will
have access to Europe`s largest distributor of cannabis, providing
direct access to a large and rapidly growing customer base.
Through APS, Aurora Nordic has access to existing greenhouse
space it could utilize for cultivation as of the summer of 2018 if
the company so chooses.
Under the terms of the agreement, and upon the achievement of
certain milestones by the JV, the companies intend to fund
construction of the Aurora Nordic facility through a combination of
conventional, non-dilutive project finance, and direct investment
by Aurora and APS on a pro-rata basis.
Aurora Nordic will focus on the cultivation and sales of
cannabis in Denmark, Sweden, Norway, Finland and Iceland, through Aurora's wholly-owned
subsidiary Pedanios GmbH. As capacity from the Aurora Nordic
facility expands, excess capacity will be distributed to other EU
countries with the support of Pedanios.
"This is a huge next step for Aurora, establishing us as the
leading cannabis company in Europe, a market of well over 400 million
people, dramatically accelerating our international expansion,"
said Terry Booth, CEO. "We are
already the leading exporter to and distributor of medical cannabis
in Germany, and now have the
largest funded capacity footprint in the rapidly-growing European
market, in which only a handful of licensed cannabis companies are
currently able to operate."
Mr. Booth added, "The relationship between APS and Larssen, who
identified this opportunity for us, goes back many years through
the joint development of a number of large-scale projects. This
provides Aurora Nordic with a major advantage in terms of time to
market and overall execution. We will be able to utilize the
operational capacity of one of the largest greenhouse vegetable
growers in Europe (APS), in
addition to Aurora's deep store of cannabis sector expertise, from
growing to distribution. Furthermore, Mads
Pedersen, APS's CEO, is a highly respected entrepreneur in
the Nordic countries, and we will be able to leverage his strong
industry and financial sector network to execute on Aurora Nordic's
development and growth on favourable terms. We are very excited
about this new venture, and look forward to be working closely with
the APS team on establishing Aurora Nordic as the dominant cannabis
company in the European market."
"We are delighted to partner with the world`s most dynamic
cannabis company, with its exceptional execution track record,"
said Mads Pedersen, CEO of APS.
"Aurora shares our high-technology, high-quality and ultra-low cost
production philosophy. That, in addition to the clear strategic
vision of Terry Booth, made Aurora
our partner of choice to develop the full potential of our cannabis
license and build Europe's leading
cannabis company."
Aurora's joint venture partner APS is one of Europe's largest greenhouse producers of
tomatoes and other vegetables, and is known for achieving excellent
yields per square foot. APS, which operates 3,000,000 square foot
of greenhouse production space, currently ships up to 100,000 kg of
greenhouse vegetable produce per day, requiring high levels of
automation and a sophisticated logistical infrastructure. APS CEO
Mads Pedersen was awarded, by PWC
the accolade of "Business Owner of the Year" for 2017 in
Denmark. Mr. Pedersen and his team
will bring to Aurora Nordic important operational capacity, as well
as a strong local network of suppliers, finance and logistics
partners.
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 Alfred Pedersen
& Søn
Alfred Pedersen & Søn is the
largest tomato and sweet pepper grower in Scandinavia, with a total
of 2.8 million square feet (26 hectares) cultivation space under
glass. APS is the largest producer in Scandinavia of both
conventional and organic tomatoes, and the leading grower of
pepper and cucumber, all produced in state of art greenhouses. The
company is widely-recognized for consistently being at the
forefront of innovation.
On behalf of the Boards 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 completion of Aurora
Sky. 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) accept
responsibility for the adequacy or accuracy of this
release.
SOURCE Aurora Cannabis Inc.