First Federally Regulated Recreational Market
in Europe and Largest Outside of
Canada
NASDAQ | TSX: ACB
EDMONTON, AB, Nov. 8, 2021 /PRNewswire/ - Aurora Cannabis Inc.
(the "Company" or "Aurora") (NASDAQ: ACB) (TSX: ACB),
the Canadian company defining the future of cannabinoids worldwide,
today announced that Aurora Nederland B.V., a wholly owned indirect
subsidiary of the Company, has entered into an agreement to invest
in a significant equity stake in Netherlands-based Growery
B.V. ("Growery"), one of the few license holders entitled to
participate in the Controlled Cannabis Supply Chain Experiment (the
"CCSC"). The agreement is subject to the regulatory notification
procedure.
Aurora's investment in Growery is structured such that the
Company intends to invest an immaterial cash amount of which a
portion is due and payable upfront, and the remainder dependent on
Growery achieving certain milestones. Under the terms,
Aurora will provide a secured loan to Growery to construct a
facility, fund early operations and provide technical and
operational support through its Netherlands-based state-of-the-art research
facility for medical cannabis, established in 2018. Aurora expects
to fully consolidate the revenues realized through the investment
into Growery under the applicable International Financial Reporting
standards.
"Our investment in Growery is a significant advancement for our
global recreational cannabis strategy. The Netherlands is expected to be the largest
federally regulated recreational market outside of Canada, and is a proof point that our medical
market success in Europe is
portable to recreational markets," said Miguel Martin, Chief Executive Officer of Aurora
Cannabis. "Aurora's global leadership is underscored by a proven
track record of regulatory compliance, testing, and commitment to
science. With similar values and commitment to excellence, we are
pleased to be working with Growery to enter the Dutch market."
"The shared expertise of Growery and Aurora will enable the
delivery of high-quality cannabis to the new recreational program
in the Netherlands," declared a
spokesperson from Growery. "We aspire to be a driving force in this
evolving market and a premier provider of cannabis to consumers. In
Aurora we have found an experienced partner with the global
leadership needed to enable a significant head start in the
CCSC."
The CCSC is scheduled to be in effect for a minimum of four
years, during which the Dutch government will evaluate if the rules
of the CCSC should be expanded nationally. Anticipated demand
during the CCSC is approximately 30,000 kilograms of dried flower
annually. Should the CCSC be expanded nationally (from
approximately 80 coffee shops in 10 selected municipalities to the
nearly 600 coffee shops that exist today), it is estimated that
the Netherlands would require
approximately 200,000 kilograms of dried flower annually to fulfill
demand.
About Aurora:
Aurora is a global leader in the
cannabis industry, serving both the medical and consumer
markets. Headquartered in Edmonton,
Alberta, Aurora is a pioneer in global cannabis dedicated to
helping people improve their lives. The Company's
brand portfolio includes Aurora, Aurora Drift, San
Rafael '71, Daily
Special, MedReleaf, CanniMed, Pedanios, Whistler, Reliva and KG7
CBD. Driven by science and innovation, and with a focus on
high-quality cannabis products, Aurora's brands continue to break
through as industry leaders in the medical, performance,
wellness and adult recreational markets
wherever they are launched. Learn more
at www.auroramj.com and follow us
on Twitter and LinkedIn.
Aurora's common shares trade on the TSX
and NASDAQ under the symbol "ACB" and is a constituent of
the S&P/TSX Composite Index.
About Growery
Growery cultivates, process and
distributes cannabis to coffeeshops in the recreational cannabis
market in the Netherlands as part
of the Controlled Cannabis Supply Chain Experiment sanctioned
by the Dutch government.
For more information visit Growery.nl and follow us on
LinkedIn.
Forward-looking Information
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. Forward-looking statements made in
this news release include statements regarding the Company's
investment in Growery including a loan to fund its facility
construction and the provision of technical and operational
support, the Company's intention to consolidate revenue realized
through the investment under IFRS, the ability of Growery to
delivery high quality cannabis to the Dutch recreational cannabis
market, the impact of the CCSS, and the overall potential of the
Dutch recreational cannabis market.
These forward-looking statements are only predictions. Forward
looking information or statements contained in this news
release have been developed based on assumptions
management considers to be reasonable. Material factors
or assumptions involved in developing forward-looking statements
include, without limitation, publicly available information from
governmental sources as well as from market research and industry
analysis and on assumptions based on data and knowledge of this
industry which the Company believes to be reasonable.
Forward-looking statements are subject to a variety of risks,
uncertainties and other factors that management believes to be
relevant and reasonable in the circumstances could cause actual
events, results, level of activity, performance, prospects,
opportunities or achievements to differ materially from those
projected in the forward-looking statements. These risks
include, but are not limited to, the ability to retain key
personnel, the ability to continue investing in infrastructure to
support growth, the ability to obtain financing on acceptable
terms, the continued quality of our products, customer experience
and retention, the development of third party government and
non-government consumer sales channels, management's
estimates of consumer demand in Canada and in jurisdictions where the Company
exports, expectations of future results and expenses, the risk
of successful integration of acquired business and operations,
management's estimation that SG&A will grow only in proportion
of revenue growth, the ability to expand and maintain distribution
capabilities, the impact of competition, the general impact of
financial market conditions, the yield from cannabis growing
operations, product demand, changes in prices of required
commodities, competition, and the possibility for changes in laws,
rules, and regulations in the industry, epidemics, pandemics or
other public health crises, including the current outbreak of
COVID-19, and other risks, uncertainties and factors set out
under the heading "Risk Factors" in the Company's annual
information form dated September 27,
2021 (the "AIF") and filed with Canadian securities
regulators available on the Company's issuer profile on SEDAR
at www.sedar.com and filed with and available on the
SEC's website at www.sec.gov. The Company cautions
that the list of risks, uncertainties and other factors described
in the AIF is not exhaustive and other factors could also adversely
affect its results. Readers are urged to consider the risks,
uncertainties and assumptions carefully in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such information. 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 securities law.
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SOURCE Aurora Cannabis Inc.