Retail Strategy and Store Concept
Unveiled
TSX: ACB TSX: CLIQ
EDMONTON, Aug. 8, 2018 Aurora Cannabis Inc. ("Aurora")(TSX:
ACB) (OTCQB: ACBFF) (Frankfurt:
21P; WKN: A1C4WM) and Alcanna Inc. ("Alcanna") (TSX: CLIQ) today
announced the companies have reached a license agreement
whereby Alcanna has been given exclusive rights to open
retail cannabis stores under the brand name "Aurora" across
Canada. Alcanna's position as the
biggest private sector liquor retailer in Canada, aligns with Aurora's position as one
of the world's leading cannabis companies.
In February, Aurora announced its strategic investment in
Alcanna (formerly Liquor Stores NA), the Edmonton, Alberta-based retailer of alcoholic
beverages with 229 retail outlets in Western Canada and Alaska, with a view to establishing a leading
brand of cannabis retail outlets. This forward-thinking partnership
combines Aurora's brand leadership, high-quality products, customer
care and scientific innovations with Alcanna's well-established
retailing infrastructure and expertise. Over the last 25 years,
Alcanna has established an exemplary track-record of responsibly
retailing controlled substances in retail environments that require
strict compliance with government regulations.
Aurora and Alcanna have created a unique and engaging, state-of
the art consumer retail concept that aims to deliver an inviting,
inclusive, and educational experience. Highly trained Category
Specialists will engage both new and experienced consumers with
superior product knowledge and socially responsible advice. The
stores will operate under the "Aurora" banner, but will represent a
house of brands, carrying a carefully curated, but broad selection
of products from Licensed Producers across Canada, including Aurora, MedReleaf and
CanniMed.
Highlights
- Alcanna will build, own and operate the new cannabis stores,
where permitted, leveraging its experience and expertise as a
responsible retailer of controlled substances.
- The stores will operate under the Aurora name, providing
immediate brand recognition based on the company's reputation as a
producer of high-quality cannabis products.
- Alcanna is currently converting several of its existing liquor
stores into cannabis retail outlets.
- Additionally, Alcanna has leveraged its long-standing
relationships with commercial landlords to secure a multitude of
primary locations across Alberta.
- When permitted by government, Alcanna is well-prepared to open
a large number of retail stores in any province in Canada.
- In Alberta, Alcanna
anticipates opening 37 stores, starting October 17, 2018, the maximum number permitted to
a single operator under provincial regulations in year one of
legalized adult consumer use.
- Alcanna will use its deep connections with general contractors
and trades, enabling it to quickly mobilize construction teams at
approved sites.
- Alcanna will retain Aurora through CanvasRx, CanniMed and
MedReleaf, which have deep experience working with cannabis users,
and unparalleled data regarding efficacy and customer experience to
assist in training its in-store associates know as Category
Specialists.
"This Agreement between Aurora and Alcanna, combining physical
presence, retail experience, capacity and expertise with our brand
strength, product know-how and deep data, creates a significant
competitive advantage that will allow for the rapid development of
a robust retail network in Alberta, and any other jurisdiction that
permits private retail of cannabis for adult consumer use," said
Aurora CEO Terry Booth. "We have
collaborated on store design and layout to ensure the ultimate
customer-focused experience, based on a broad selection of products
that we anticipate will resonate strongly with the adult consumer
use market."
James Burns, CEO of Alcanna,
added, "For the last five months, expert teams in store
development, merchandising, training and product knowledge have
been working steadily toward bringing the best cannabis
retail stores to life in Alberta" "We have deep capabilities that
will enable us to rapidly develop a large network of well-located
cannabis stores, delivering a unique customer experience from
October 17, 2018 onwards. Launching
this retail network under the Aurora name will capitalize on its
reputation as a leader in producing high-quality cannabis products,
created with the consumer in mind. We are excited to operationalize
this vision, and execute rapidly in Alberta, and across Canada, wherever we are permitted to do
so."
About Aurora
Headquartered in Edmonton,
Alberta, with funded capacity in excess of 570,000 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.
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 ultra-low costs. 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 the Company's rapid organic growth 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, Anandia Labs and MedReleaf - 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), Evio Beauty Group (private), Wagner
Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), and Alcanna Inc.
(TSX: CLIQ).
For more information about Aurora, please visit our investor
website www.investor.auroramj.com
About Alcanna Inc.
Alcanna (formerly Liquor Stores N.A. Ltd.), headquartered in
Edmonton Alberta is one of the
three largest private sector retailers of alcohol in North America and by far the largest private
sector retailer in Canada – owning
and operating 229 locations in Alberta, B.C. and Alaska. With revenues in excess of
$600 million per year, Alcanna
processes over 20 million individual retail transactions of
beverage alcohol.
Alcanna's innovative Wine and Beyond brand brought an entirely
new concept to alcohol sales in Alberta in a large format experiential
environment with over 12,000 different products to choose from,
many sold only at Alcanna stores, at extremely competitive prices.
Our Liquor Depot brand is ubiquitous throughout Alberta and our new Deep Discount Liquor
banner has brought the lowest prices in an attractive
consumer-friendly environment to Albertans. Aurora Cannabis
invested $138 million to buy a 25%
stake in Alcanna in 2018. Alcanna's common shares and convertible
subordinated debentures trade on the Toronto Stock Exchange under
the symbols "CLIQ" and "CLIQ.DB", respectively.
Additional information about Alcanna Inc. is available at
www.sedar.com and the Company's website at
www.alcanna.ca/investors.
Forward looking statements
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities laws ("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. In particular, this news release contains
forward‐looking statements regarding, without limitation: the
license granted by Aurora to Alcanna to brand its retail cannabis
stores and the option to use the Aurora brand in other Canadian
jurisdictions; the timing and receipt of required regulatory and
third party approvals, including the receipt of retail cannabis
licenses in Alberta; Alcanna's
proposed retail cannabis operations in Canada, including its ability to secure retail
locations; Alcanna's ability to build, own and operate retail
cannabis stores and convert existing liquor stores into retail
cannabis stores in a timely manner; the design, completion and
operation of retail cannabis stores; the branding, staffing and
customer experience of retail cannabis stores; product selection;
and the growth of a retail cannabis business in Canada and Aurora's and Alcanna's anticipated
market share thereof.
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. Any
number 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 including, but not
limited to: the ability of the parties to receive and maintain, in
a timely manner, the required government, regulatory and other
third party approvals required to participate in the retail adult
use market for cannabis in Canada,
including retail cannabis licenses in Alberta; that, under applicable laws or rules
in respect of cannabis, Aurora and its affiliates will be permitted
to take certain actions with Alcanna in furtherance of the
development of a retail cannabis business together, including
permitting Alcanna to own and operate Aurora-branded retail
cannabis stores; the availability of appropriate retail locations
in the identified areas; the timing and opening of retail cannabis
locations; the assets and employees of Alcanna and Aurora; the
availability of retail-cannabis products; the timing and
legalization of recreational cannabis products; changes to cannabis
laws; and changes in general market conditions.
Readers are cautioned that the foregoing list of risk factors
is not exhaustive. Additional information on other factors that
could affect the operations or financial results of Alcanna and
Aurora are included in reports on file with applicable securities
regulatory authorities which may be accessed on Alcanna's and
Aurora's respective company profiles on SEDAR at
www.sedar.com.
Aurora and Alcanna are under no obligation, and expressly
disclaim 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.
Terry Booth,
CEO
|
James Burns, Vice
Chair and CEO
|
Aurora Cannabis
Inc.
|
Alcanna
Inc.
|
SOURCE Aurora Cannabis Inc.