Entering High-Volume, High-Margin Product
Category with Industry-Leading Technology
TSX: ACB
EDMONTON, July 11, 2018 /CNW/ - Aurora Cannabis Inc.
("Aurora" or the "Company") (TSX: ACB) (OTCQB: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) announced today
that the Company has entered into an agreement with Wagner Dimas
Inc. ("Wagner Dimas") the transaction includes cash and the
issuance of common shares of Aurora relative to the achievement of
certain milestones for the joint commercialization of Wagner
Dimas's technology. This technology targets the high-volume,
higher-margin pre-rolled segment of the cannabis market.
Under the terms of the agreement, Aurora and Wagner Dimas will
form a new Canadian entity to which Wagner Dimas has agreed to
assign intellectual property with exclusive rights to Aurora. The
transaction is subject to completion of definitive agreements,
delivery of certain equipment from Wagner Dimas to Aurora -
expected within the next 21 days - as well as customary TSX and
regulatory approvals.
Aurora has identified the pre-roll market segment as a
high-volume, higher-margin opportunity. BDS-Analytics, for
instance, determined that pre-rolls account for 12% of total
revenue generated from the adult consumer market in Washington State (2017). Wagner Dimas produced
over 5 million pre-rolls in 2017, and, following scale-up to a new
facility, the company is on pace to produce over 50 million
pre-rolls in 2018 for the Californian market alone. Furthermore,
the Wagner Dimas technology enables the production of over 75
different pre-rolled product types, addressing a wide variety of
market demands. Wagner Dimas provides pre-rolls to a wide range of
the most popular brands in the California market.
Management Commentary
"Aurora searched the globe for scalable pre-roll technologies,
and ended up in California, which
has the best-established pre-roll market with the highest demand,"
said Terry Booth, CEO. "Wagner Dimas
was selected due to its market-leading, unique, patented technology
and proprietary processes that enable the massive-scale production
of high-quality joints. The proven Wagner Dimas technology provides
us with significant competitive advantages in this high-volume,
high-margin segment of the cannabis market. We will be able to meet
Canadian consumer demand, and, additionally, with a capacity of
over 100,000 pre-rolls per machine per day, we have phenomenal
scalability to rapidly expand production and service growing demand
in the global market. This agreement enables the creation of
another Aurora product category to our growing portfolio of value
added brands."
Dean Arbit, CEO of Wagner Dimas,
added, "This agreement launches Wagner Dimas onto the global stage.
Wagner Dimas is delighted to partner with Aurora, the industry
innovation leader with a large and rapidly growing domestic and
international footprint, to advance the development and
commercialization of our next generation of manufacturing
technology. In addition to the adult consumer market for
traditional joints, this technology also provides us with the
ability to further serve global CBD market demand, which is
experiencing unprecedented growth and acceptance."
Under the terms of the agreement, the new company will be owned
40.5% by Aurora and 59.5% by Wagner Dimas. Additionally, Aurora
will be granted exclusive licenses to the pre-roll technology
subject to certain conditions.
About Aurora
Headquartered in Edmonton,
Alberta, with funded capacity in excess of 430,000 kg per
year and sales and operations in 14 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. Aurora, from day one of its existence, has
been steadfast in its respect for the cannabis community, the
culture and its pioneers, as well as has been a strong supporter of
and advocate for access to cannabis.
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. Intended to be replicable and
scalable globally, these production facilities are designed to
produce cannabis of significant scale, with high quality,
industry-leading yields, and ultra-low per gram production costs.
Each of Aurora's facilities is built to meet European Union (EU)
GMP standards, and both its first production facility and its
wholly owned European medical cannabis distributor Pedanios have
achieved this level of certification.
In addition to our rapid organic growth to over 1000 employees
world-wide, and strong execution on strategic M&A, which to
date includes nine companies acquired - CanvasRX, Peloton
Pharmaceutical, Pedanios, H2 Biopharma, Urban Cultivator, BC
Northern Lights, Larssen, CanniMed Therapeutics, and Anandia Labs -
Aurora is distinguished by its reputation as a partner of choice
and employer of choice in the global cannabis sector, having
invested in and established strategic partnerships with a range of
leading innovators, including: The Green Organic Dutchman Holdings
Ltd. (TSX: TGOD), 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), Namaste Technologies Inc. (TSXV: N), and Alcanna Inc.
(TSX: CLIQ).
Aurora's Common Shares trade on the TSX under the symbol "ACB",
and are a constituent of the S&P/TSX Composite Index.
For detailed investor information about Aurora, please visit our
investor website investor.auroramj.com.
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: a)
the popularity and success of the sale of pre-rolled
cannabis in the domestic market b) the completion of definitive
agreements, c) the delivery of equipment from Wagner Dimas to
Aurora, and d) the completion 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.
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.
Terry Booth, CEO
Aurora Cannabis Inc.
SOURCE Aurora Cannabis Inc.