Cann to Use Funds for Accelerated
Expansion
Aurora's Neil Belot Appointed to Cann Board of Directors
TSX: ACB ASX: CAN
VANCOUVER and EDMONTON, Dec. 4,
2017 /CNW/ - Aurora Cannabis Inc. ("Aurora") (TSX: ACB)
(OTCQB: ACBFF) (Frankfurt: 21P;
WKN: A1C4WM) today announced that the Company is increasing its
ownership stake in Cann Group Ltd ("Cann") (ASX: CAN) from 19.9% to
22.9% by participating in Cann's latest, fully underwritten
Placement of Shares (the "Placement"), priced at AUS$2.50 per share
(approximately CA$2.41).
Cann's Placement consists of an Institutional Share Placement
("ISP"), as well as a Share Purchase Plan ("SPP") for eligible,
registered retail shareholders for total proceeds of up to AUS$60
million (~CA$58 million). Aurora will invest up to AUS$26 million
(~CA$25.1 million) to increase its ownership participation to
22.9%. The Placement consists of three stages. The first AUS$50
million ISP stage has been completed, while the third and final
stage is anticipated to complete on January
15, 2018. A detailed description of the Placement's terms
and conditions, as well as Aurora's participation therein, can be
found in Cann's press release issued today:
http://bit.ly/2jHIa4A
Cann is Australia's first
company licensed to do research on and cultivate cannabis for
medical purposes. The Company currently has two small-scale
facilities, and has commenced working on a Phase III, 172,000
square foot expansion. The funds raised will enable Cann to
accelerate completion of this facility and ramp up production to
meet demand, which is anticipated to grow rapidly.
"Cann is the leading cannabis company in Australia, having been awarded the first ever
license, and funding the acceleration of its expansion plans makes
strong strategic sense," said Terry
Booth, Aurora's CEO. "The value of our initial $6.5 million investment, based on Cann's closing
share price as of Friday 1 December
2017, has already increased ten-fold to $65 million, and we have strong confidence in the
Cann team to continue executing on their expansion plan and
generate further shareholder value in the process."
Additionally, the Company announced that Aurora's Chief Global
Business Development Officer, Neil
Belot, has been appointed to Cann's Board, effective
22 November 2017, further
strengthening the ties between the two companies beyond the
Technical Services Agreement ("TSA").
Mr. Belot added, "This investment and the services, genetics and
consultancy we will be delivering to Cann under our TSA, will help
to significantly accelerate Cann's development. Beyond the planned
capacity expansion, we are also very excited about the scientific
research conducted by Cann, its planned investments in product
diversification, and its export potential. I look forward to being
closely involved with the company, and actively support its
development as member of the Board."
Cann Group CEO Peter Crock,
stated, "We can now move ahead with full certainty on our phase 3
expansion program, which includes the development of a 16,000m2 greenfield facility,
incorporating some 9,600m2
of flowering production area. In addition, we can progress plans
for the development of further production sites located on a
strategic basis to help mitigate production-related risks. The
export opportunity is now being evaluated by the relevant
authorities and I expect an announcement in the near future.
Leading into 2018 and beyond, the Company will continue to deliver
on its strategic objectives and milestones, with an immediate focus
on the phase 3 expansion program."
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.
Aurora is invested in Radient, a leading extraction technology
company, as well as 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 Cann
Cann is building a world-class business
focused on breeding, cultivating and manufacturing medicinal
cannabis for sale and use within Australia. The Company has established
research and cultivation facilities in Melbourne and is striving to provide access to
medicinal cannabis for Australian patients. Cann has executed
collaboration agreements that will enable it to establish a leading
position in plant genetics, breeding, extraction, analysis and
production techniques required to facilitate the supply of
medicinal cannabis for a range of diseases and medical conditions.
It was issued with Australia's
first medicinal cannabis research licence in February 2017, in addition to Australia's first medicinal cannabis
cultivation licence in March 2017.
Aurora Cannabis Inc – Canada's
second largest listed medicinal cannabis company – is a cornerstone
investor in Cann, with a 22.9% shareholding.
On behalf of the Board 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 investment in Cann Group
by Aurora and the use of the proceeds thereof by Cann Group.
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 Cann Group 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 nor its Regulation Services Provider (as that
term is defined in the policies of Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Aurora Cannabis Inc.