Adding Iconic Organic Certified Premium
Cannabis Brand
TSX: ACB | NYSE: ACB
EDMONTON, March 4, 2019 /CNW/ - Aurora Cannabis Inc.
("Aurora" or the "Company") (TSX: ACB) (NYSE: ACB) (Frankfurt: 21P; WKN: A1C4WM) announced today
that the Company has completed the acquisition of all the issued
and outstanding shares of privately held Whistler Medical Marijuana
Corporation ("Whistler"), in an all-share transaction (the
"Transaction"), pursuant to the terms of an amalgamation agreement
dated January 31, 2019 among
Whistler, Aurora, and a wholly
owned subsidiary of Aurora (the "Agreement").
Located in Whistler, British
Columbia, Whistler has
developed one of Canada's most
iconic cannabis brands, built on quality, award-winning, organic
certified BC bud. The Transaction provides Aurora with a premium
and differentiated organic certified product suite, expanding both
its medical and consumer offerings, and reinforcing Aurora's
presence in the well-established west coast cannabis market.
Strategic Rationale
Whistler has developed a strong
reputation with patients and consumers alike for providing premium
quality cannabis products. Founded in 2013, Whistler is one of Canada's original ten licensed producers, and
was the first licensed producer to obtain organic certification and
sell a full suite of organic certified cannabis products.
Whistler operates two indoor
licensed production facilities, the first located in Whistler, British Columbia, and the second, a
recently licensed, purpose-built facility located a 20-minute drive
from the Whistler facility in
Pemberton, British Columbia. Once
the Pemberton facility reaches
full capacity (anticipated for Summer 2019), the facilities are
anticipated to have a combined production capacity of over 5,000 kg
per year, expandable to well over 15,000 kg through future
expansion at the Pemberton
site.
Aurora intends to leverage its expertise in completing EU GMP
compliant facilities to accelerate certification of the new
Pemberton facility, ensuring the
Company can leverage the Whistler brand on a global scale. Through
integration with certain of Aurora's organic compliant grow
technologies, the Company anticipates increasing productivity at
both of the Whistler facilities
and increase product offerings for both domestic and global
markets. Whistler currently sells
medical cannabis derivatives internationally to both Australia and the Cayman Islands.
Additional transaction highlights:
- History of profitability driven by industry-leading
pricing: Whistler has achieved
positive cash flow since 2015, with EBITDA margins in excess of
30%. By ensuring consistency, quality, and maintaining its organic
commitment, Whistler has achieved
average selling prices exceeding 50% more than the average Canadian
medical market, and maintains a similar premium to provinces for
consumer use.
- Organic Certified EU GMP compliant production:
Whistler is certified by the
Fraser Valley Organic Producers Association ("FVOPA") and conforms
to International Organic Growing Standards. Whistler's second facility is constructed to
be in compliance with EU GMP standards which, upon certification,
will enable the Company to supply organic certified cannabis
products to the European market through our existing distribution
channels.
- Iconic Whistler brand: Through the premium quality of
its products, as well as the location association with Whistler, British Columbia, which receives
over 2.7 million visitors annually and consistently ranks as one of
the top global travel destinations, Whistler has established an iconic brand that
resonates strongly across Canada
and international markets.
- Broad product portfolio: Whistler has commercialized more than 30
flower varieties and strain-specific oil products, from an
extensive genetics bank of over 150 strains.
- Further strengthens presence in Western Canada: Already one of the
strongest performing companies in the Western Canadian consumer
markets alongside Aurora, AltaVie and San Rafael '71 brands,
Whistler will further add a
premium organic certified brand with exceptional traction and
visibility in British Columbia,
Canada's third most populous province.
- Whistler's growing domestic
footprint: In addition to its existing supply arrangements in
Ontario, British Columbia, Saskatchewan and the Yukon, Whistler has received product requests from
Alberta and Manitoba.
- Organic certified large-scale extraction: Whistler has differentiated large-scale
cold-water extraction technology and processes, creating a full
suite of organic certified oil products (including THCA, CBG, and
high CBD oils).
Management Commentary
"Now that this transaction is complete, we intend to accelerate
development of Whistler and
leverage its iconic brand globally," said Terry Booth, CEO of Aurora. "Applying certain of
our best practices to the Whistler
cultivation protocols, we anticipate an increase in capacity of the
Pemberton facility beyond the
stated 5,000 kg annual production target. Furthermore, in pursuing
EU GMP certification, we expect, once certified, to offer
Whistler's premium organic flower
and derivative products in the much higher margin EU medical
cannabis market, further increasing the accretive nature of this
transaction. Whistler and Aurora
are very much aligned with respect to cannabis culture and
community. We expect a swift and successful integration with
Whistler, our latest
partner."
Christopher Pelz, CEO and Founder
of Whistler, added, "Aurora
represents an ideal partner for Whistler, enabling us to maintain our unique
craft identity while leveraging the vast resources of Aurora's
large international footprint to rapidly scale our growth and
margin profile. We look forward to integrating with the impressive
organization that Aurora has developed to continue to produce the
highest quality, organic certified cannabis for our medical and
consumer markets."
Transaction
In consideration of the first tranche of the Transaction, Aurora
has issued 13,667,933 common shares in the capital of Aurora
("Aurora Shares") to Whistler
shareholders. Two milestone payments in the amounts of $30,000,000 (the "First Milestone Payment") and
$10,000,000 (the "Second Milestone
Payment") are also payable by Aurora to the shareholders of
Whistler, in Aurora Shares at the
volume weighted average trading price of Aurora Shares in the five
trading days immediately prior to the date of issuance. The First
Milestone Payment will be issuable upon satisfactory licensing of
Whistler's Pemberton facility. The Second Milestone
Payment will be issued on the earlier of March 1, 2020 and the date on which Whistler achieves full production in
accordance with the terms of the Agreement.
About Aurora
Headquartered in Edmonton, Alberta,
Canada with funded capacity in excess of 500,000 kg per
annum and sales and operations in 24 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 the Company's rapid organic growth and strong
execution on strategic M&A, which to date includes 16 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,
ICC Labs and Whistler – 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), Alcanna Inc. (TSX:
CLIQ) and High Tide Inc. (CSE:HITI).
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
Neither the TSX, 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.
Terry Booth, CEO
Aurora Cannabis 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
completion of definitive agreements and closing of the Transaction.
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.
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SOURCE Aurora Cannabis Inc.