TSX: ACB
EDMONTON and ANCASTER, ON, Jan. 16,
2018 /CNW/ - Aurora Cannabis Inc. ("Aurora") (TSX: ACB)
(OTCQB: ACBFF) (Frankfurt: 21P;
WKN: A1C4WM) and The Green Organic Dutchman Holdings Ltd. ("TGOD")
(privately held) today announced that the companies have completed
Aurora's strategic investment in TGOD, as previously announced on
January 5, 2018.
Pursuant to the terms of the agreement, Aurora has subscribed
for subscription receipts through a private placement (the
"Placement"), which shall automatically convert into units upon
TGOD's common shares being listed on a stock exchange in
Canada (the "Listing Date"). Upon
conversion, the units will provide Aurora with a 17.62% interest in
TGOD on a non-diluted basis. As previously announced, the Placement
consists of 33,333,334 units, priced at $1.65 per unit, for gross proceeds of
$55 million. Each unit consists of
one common share and one half of one common share purchase warrant,
exercisable at $3.00 per common share
for a period of 36 months following closing of the offering.
TGOD intends to complete an initial public offering in March of
2018, is currently completing the expansion of its Ancaster, Ontario facility and, together with
Aurora Larssen Projects Ltd. ("ALPS") has commenced the project to
construct an 820,000 square foot high technology hybrid greenhouse
facility in Valleyfield, Quebec,
with a projected production capacity in excess of 100,000 kg of
organic cannabis per annum.
Additionally, the parties entered into an investor rights
agreement (the "Investor Rights Agreement"), whereby Aurora has the
option to incrementally increase its ownership interest in TGOD to
over 50% upon TGOD achieving certain operational milestones, as
previously set out in the companies' news release dated
January 5, 2018. The Investor Rights
Agreement also provides Aurora with the right to participate in any
new equity offerings of TGOD to maintain its pro rata
ownership.
Supply Contract
The companies have entered into a supply contract, providing
Aurora with the right to purchase up to 20% of the annual
production of organic cannabis from TGOD's Ancaster and Valleyfield facilities. This additional supply
of more than 23,000 kg per annum will expand Aurora's global funded
annual production capacity to approximately 200,000 kg. Under the
terms of the contract, Aurora can increase its offtake from these
two facilities to 33% upon increasing its ownership interest in
TGOD to 31%.
Management Commentary
"This strategic partnership between Aurora and TGOD is mutually
beneficial in that it accelerates TGOD's market access and
penetration through technology and services, as well as through
access to capital and distribution channels, while providing Aurora
with a significant, sustainable supply of premium organic cannabis
and the opportunity to benefit from TGOD's commercial success,"
said Terry Booth, CEO of Aurora.
"This agreement shows how Aurora increasingly is becoming the
partner of choice within the cannabis industry and is able to
leverage this position to accelerate shareholder value
creation."
"Together with Aurora and its subsidiary ALPS, the
industry-leading design consultancy for high-technology hybrid
greenhouses, we will be able to accelerate our business plan and
establish TGOD as the world's premier provider of premium organic
cannabis," said Csaba Reider,
President of TGOD. "Utilizing Aurora`s distribution channels will
further strengthen our own deep consumer packaged goods and brand
building experience, and increase our market reach."
Rob Anderson, TGOD CEO, added,
"Partnering with the industry leader in terms of innovation and
execution, validates how TGOD's differentiated business model
creates substantial value for our partners and shareholders. This
is a synergistic partnership that will help TGOD reach an
international audience with its premium products and rapidly
capture market share in this incredibly dynamic market, and will
provide further differentiation and diversification to Aurora's
product offering. We look forward to working with the teams at ALPS
and Aurora as we execute on our de-risked but aggressive growth
strategy."
Aurora Shareholders Approve Share issuance at Special
Meeting
The Shareholders of Aurora Cannabis Inc. ("Aurora") voted
98.18% in favour of the share issuance resolution at a special
meeting of the shareholders of Aurora held January 15, 2018, for the purpose of approving
the issuance of shares to the shareholders of CanniMed Therapeutics
Inc.
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 the Green Organic Dutchman Holdings ltd.
The Green Organic Dutchman Holdings Ltd. established in
2012, is licensed under the Access to Cannabis for
Medical Purposes Regulations ("ACMPR") to cultivate
medical cannabis. The company was granted its
cultivation license in 2016 and sales license in 2017.
TGOD grows high-quality, organic medical cannabis based on
sustainable, all-natural principles, and all products are
laboratory tested to ensure patients have access to a standardized,
safe and consistent product. TGOD carries out its
principal activities producing cannabis from its facilities in
Ancaster, Ontario, and is
constructing a high-technology, ALPS designed facility in
Valleyfield, Quebec. Upon
completion, both facilities combined will measure 970,000 square
feet, with a total productive capacity of 116,000 kg per
year. TGOD has raised approximately $160,000,000, with over 4,000
shareholders, and is well positioned for the planned 2018
March IPO. Interested investor information is available at
www.tgod.ca.
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 TGOD's
initial public offering, completion of the Ancaster and Valleyfield facilities and the performance of
Aurora and TGOD. 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.