Participating in a Rapidly Growing Cannabis
and Lifestyle Accessories Retailer
TSX | NYSE: ACB
EDMONTON, Dec. 13, 2018 /CNW/ - Aurora Cannabis Inc.
("Aurora" or "the Company") (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM) announced today
that it has entered into an agreement to invest $10 million by way of brokered private placement
in High Tide Inc. ("High Tide"), a privately held, Alberta-based, retail-focused cannabis and
lifestyle accessories company. In total, Aurora will receive 10,000
senior unsecured convertible debentures issued by High Tide priced
at $1,000 per debenture, bearing an
interest rate of 8.5% per annum, and convertible in aggregate to
13,333,333 common shares of High Tide at $0.75 per share (the "Transaction").
High Tide is developing an expanding network across Canada of cannabis and cannabis accessory
retail stores, as well as manufacturing and distributing branded
cannabis accessories which positions it exceptionally well to
capitalize on the Canadian adult-use cannabis industry. Through its
two wholesale businesses, Famous Brandz and RGR Canada, and the 19
existing Smoker's Corner retail locations, High Tide serves more
than 170,000 retail customers per year. Through Canna Cabana and
eventually KushBar, High Tide currently operates 4 retail stores in
Alberta, with additional leases
secured with the intention of opening new locations across
Canada in the near future.
Management Commentary
"In addition to four operational cannabis retail stores, High
Tide has developed a broad network of smoking accessories and
cannabis lifestyle stores that feature unique products, supported
by strong branding that has resonated well with Canadian
consumers," said Terry Booth, CEO of
Aurora. "Through our investment, we gain exposure to two unique
retail store concepts currently launching across Canada, as well as established cannabis
culture brands and thousands of proprietary accessories. We look
forward to working with the team at High Tide and supporting them
as they execute on their aggressive growth strategy."
Raj Grover, President & Chief Executive Officer of High Tide
added, "We're thrilled to gain the support and backing of Aurora as
we continue to rapidly execute on a significant number of growth
initiatives across Western Canada.
Our wholesale and retail segments are performing strongly in the
post-legalization environment, especially with our new cannabis
retail stores providing a significant amount of momentum.
Furthermore, we are well positioned to pursue additional
opportunities in Ontario's
upcoming retail market. With a strong portfolio of branded products
and retail stores, we're quickly becoming one of Canada's largest retailers of cannabis
products and lifestyle accessories."
High Tide's vertically-integrated portfolio of businesses
includes:
Canna Cabana
- An approachable, playful and sophisticated network of retail
cannabis stores currently being opened across Canada.
- 4 stores currently open and performing strongly in Calgary, Edmonton, Lethbridge and Whitecourt.
- In Alberta, the maximum of 37
retail locations has been targeted with substantially all leases,
permits and licenses secured to date.
- Also seeking to establish the maximum of 8 retail cannabis
stores in in British Columbia as
well as the maximum of 75 retail cannabis stores in Ontario.
KushBar
- A complementary retail concept that provides consumers with
elevated experiences featuring proprietary products, excellent
customer service and modern décor.
- Strategically targeting store locations in Alberta and Ontario.
- High Tide owns 50.1% of KushBar Inc.
RGR Canada:
- An innovative designer, manufacturer and distributor of
cannabis accessories.
- High quality, low cost and global manufacturing network in
place.
- Extensive product catalog which contains more than 4,200 unique
SKUs, of which over 3,000 are designed by and proprietary to High
Tide.
Famous Brandz
- Premier manufacturer and distributor of licensed, branded
smoking products through partnerships with celebrity and
entertainment brands like Snoop Dogg, Guns N' Roses and Paramount
Pictures.
- Distribution agreements covering Canada, the United
States and Europe;
licensing agreements with unlimited global access.
Smokers Corner
- Canada's largest
counter-culture chain which has served Canadian cannabis consumers
since 2009.
- Growth to 9 corporate owned and 10 franchise locations across
British Columbia, Alberta and Nova
Scotia.
- Canadian Franchise Association approved franchise program in
place to drive rapid nationwide store expansion.
Terms of Investment
Aurora has made a $10.0 million
investment in High Tide by way of a brokered private placement. The
debentures will bear interest at a rate of 8.5% per annum from the
closing date of the final tranche of the Offering, payable on the
last business day of each calendar quarter. The Debentures are
convertible to common shares of High Tide at a post-split price of
$0.75 per common share and will
mature two years from the closing date of the Offering. The
Debentures are subject to a statutory hold period that extends four
months and one day from the closing date of the
Offering.
About Aurora
Headquartered in Edmonton, Alberta,
Canada with funded capacity in excess of 500,000 kg per
annum and sales and operations in 22 countries across five
continents, Aurora is one of the world's largest and leading
cannabis companies. Aurora is vertically integrated and
horizontally diversified across every key segment of the value
chain, from facility engineering and design to cannabis breeding
and genetics research, cannabis and hemp production, derivatives,
high value-add product development, home cultivation, wholesale and
retail distribution.
Highly differentiated from its peers, Aurora has established a
uniquely advanced, consistent and efficient production strategy,
based on purpose-built facilities that integrate leading-edge
technologies across all processes, defined by extensive automation
and customization, resulting in the massive scale production of
high quality product at low cost. Intended to be replicable and
scalable globally, our production facilities are designed to
produce cannabis of significant scale, with high quality,
industry-leading yields, and low per gram production costs. Each of
Aurora's facilities is built to meet EU GMP standards, and its
first production facility, the recently acquired MedReleaf Markham
facility, and its wholly owned European medical cannabis
distributor Aurora Deutschland, have achieved this level of
certification.
In addition to Aurora's rapid organic growth and strong
execution on strategic M&A, which to date includes 15 wholly
owned subsidiary companies – MedReleaf, CanvasRX, Peloton
Pharmaceutical, Aurora Deutschland, H2 Biopharma, Urban Cultivator,
BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics,
Anandia Labs, HotHouse Consulting, MED Colombia, Agropro, Borela,
and ICC Labs– Aurora is distinguished by its reputation as a
partner and employer of choice in the global cannabis sector,
having invested in and established strategic partnerships with a
range of leading innovators, including: Radient Technologies Inc.
(TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group
Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom
Holdings Inc. (CSE: CHOO), Capcium Inc. (private), Evio Beauty
Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC:
CTTH), and Alcanna Inc. (TSX: CLIQ).
Aurora's Common Shares trade on the TSX and NYSE under the
symbol "ACB", and are a constituent of the S&P/TSX Composite
Index.
For more information about Aurora, please visit our investor
website, investor.auroramj.com
About High Tide
High Tide is an Alberta-based,
retail-focused cannabis corporation. It is among the most
vertically-integrated companies in the Canadian cannabis market,
with portfolio subsidiaries including RGR Canada Inc., Smoker's
Corner Ltd., Famous Brandz Inc., Canna Cabana Inc. and the majority
of KushBar Inc. High Tide's strategy as a parent company is to
extend and strengthen its retail-focused integrated value chain,
while providing a complete customer experience and maximizing
shareholder value.
Representing the core of High Tide's business, RGR Canada Inc.
is a high-quality and innovative designer, manufacturer and
distributor of cannabis accessories. Founded in 2009 and approved
by the Canadian Franchise Association, Smoker's Corner Ltd. is
Canada's largest counter-culture
chain with 19 current locations. Famous Brandz Inc. is a dominant
manufacturer of licensed lifestyle accessories, through
partnerships with celebrities and entertainment companies including
Snoop Dogg and Paramount Pictures. Famous Brandz' products
are sold to wholesalers and retailers around the world. With the
deregulation of recreational cannabis for adult use across
Canada, Canna Cabana Inc. is
positioned to become a sizeable retail brand through a modern
concept with a sophisticated yet playful customer experience, while
KushBar Inc. is a retail concept that will also be focused on the
valued Canadian cannabis consumer.
For more information about High Tide Inc., visit
www.hightideinc.ca
Terry Booth,
CEO
Raj Grover, CEO
Aurora Cannabis Inc.
High Tide Inc.
Forward-Looking Statements
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 and include, but are not limited to the
variety of cannabis products that Aurora will supply to the adult
use market.. 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 the TSX or NYSE, nor their Regulation Services
Provider (as that term is defined in the policies of the TSX and,
NYSE) accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Aurora Cannabis Inc.