Funds to be Used for Expansion of Radient Facility and
Operations
TSX: ACB
TSX-V: RTI
VANCOUVER and EDMONTON,
Dec. 4, 2017 /CNW/ - Aurora Cannabis Inc. ("Aurora") (TSX:
ACB) (OTCQB: ACBFF) (Frankfurt:
21P; WKN: A1C4WM) and Radient Technologies Inc. ("Radient) (TSX-V:
RTI) today announced that further to the investor rights agreement
between both companies, as announced on November 6, 2017, Aurora will make a further
investment in Radient for a total of $12
million.
The strategic investment is structured as follows:
- Exercise of all 15,856,321 common share purchase warrants of
Radient currently held by Aurora for total proceeds of $5.8 million
- Investment through a private placement (the `Placement`) in
units consisting of one common share of Radient and one common
share purchase warrant. Units are priced at $1.37. Each warrant gives Aurora the right to
purchase one common share of Radient for $1.71 for a period of 24 months following closing
of the placement. Aurora will be purchasing 4,541,889 units for
total proceeds of $6.2 million.
The placement is subject to the receipt of all necessary
approvals, including the approval of the TSX Venture Exchange. All
securities issued in connection with the Offering are subject to a
statutory four-month hold period. Upon completion of the
investment, Aurora will have increased its position in Radient from
8.8% to 19.18% on an undiluted basis (15.87% on a diluted
basis).
Radient intends to use the proceeds from the financing to
accelerate plant capacity expansion and increased throughput at its
Edmonton facility, the purchase of
land adjacent to this facility for further expansion, including
preparations for the broadening range of extraction-based cannabis
products that are expected to be permitted under the new Cannabis
Act, as well as for working capital purposes.
"With multiple Aurora facilities coming online and ramping up
production in the coming quarters, as well as the anticipated
export of cannabis oils and preparations for the legalization of
adult consumer use in Canada,
Radient's planned expansion positions both companies exceptionally
well to accelerate revenue growth," said Terry Booth, CEO of Aurora. "This investment
reflects our strategy to build a constellation of vertically
integrated partners and subsidiaries, and we look forward to
jointly pursuing further expansion of market share in this exiting
space."
Denis Taschuk, CEO of Radient,
added, "This investment by Aurora, our cornerstone customer and
investor, enables us to more rapidly reach capacity, yield, and
throughput levels that will meet Aurora's needs, including the
potentially large opportunity presented by CBD from hemp. With this
investment, Radient will be well-positioned to become the leader in
its segment of the cannabis supply chain, while further
strengthening a relationship that has been very beneficial in terms
of market recognition, operational expansion and shareholder value
creation."
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"). Aurora 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 to Aurora's investment in Radient, Aurora 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 19.9% 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 Radient
Radient extracts natural compounds from a range of biological
materials using microwave assisted processing ("MAP™"), a patented
technology platform which provides superior customer outcomes in
terms of ingredient purity, yield, and cost. From its 20,000 square
foot manufacturing plant in Edmonton,
Alberta, Radient serves market leaders in industries that
include cannabis, pharmaceutical, food, beverage, natural health,
personal care and biofuel markets. Visit
www.radientinc.com for more information.
On behalf of the
Board of Directors,
|
On behalf of the
Board of Directors
|
AURORA CANNABIS
INC.
|
RADIENT TECHNOLOGIES
INC.
|
|
|
Terry
Booth
|
Denis
Taschuk
|
CEO
|
President and
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 investment in Radient by
Aurora and the use of the proceeds thereof by Radient.
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. Neither Aurora
nor Radient is under any obligation, and each 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 or TSX-V nor their Regulation Services
Provider (as that term is defined in the policies of Toronto Stock
Exchange and TSX venture Exchange) accept responsibility for the
adequacy or accuracy of this release.
SOURCE Aurora Cannabis Inc.