A Company with an Iconic Brand, Offering
Organic Certified Cannabis and Organic Certified Cannabis
Derivatives
TSX: ACB | NYSE: ACB
EDMONTON, Jan. 14, 2019 /CNW/ - Aurora Cannabis Inc.
("Aurora" or the "Company") (TSX: ACB) (NYSE: ACB) (Frankfurt: 21P; WKN: A1C4WM) announced today
that the Company has entered into a letter of intent ("LOI") to
acquire all the issued and outstanding shares of privately held
Whistler Medical Marijuana Corporation ("Whistler"), in an
all-share transaction valued at up to approximately $175 million, including certain milestone
payments (the "Transaction").
Located in Whistler, British
Columbia, Whistler has
developed one of Canada's most
iconic cannabis brands, built on quality, award-winning organic
certified BC bud. The Transaction is expected to provide Aurora
with a premium and differentiated organic certified product suite,
expanding both its medical and adult-use offerings, and reinforcing
Aurora's presence in the well-established west coast cannabis
market.
Strategic Rationale
Whistler has developed a strong
reputation with patients and adult-use consumers alike for
providing premium quality cannabis products. Founded in 2013,
Whistler is one of Canada's original ten licensed producers, and
was the first licensed producer to obtain organic certification and
sell a full suite of organic certified cannabis products.
Whistler operates two indoor
licensed production facilities, with its first located in
Whistler, British Columbia, and
the second, a recently licensed, purpose-built, state-of-the-art
facility located a 20-minute drive from the Whistler facility. Once the second facility
reaches full capacity (anticipated for Summer 2019) the facilities
are anticipated to have a combined production capacity of over
5,000 kg per year. Whistler sells
medical cannabis derivatives internationally to both Australia and the Cayman Islands, and through the addition of
Aurora's deep experience in completing EU GMP certified facilities
and its large global distribution network, Aurora plans to pursue
additional international export opportunities.
Additional transaction highlights:
- History of profitability driven by industry-leading
pricing: Whistler has achieved
positive cash flow since 2015, with EBITDA margins in excess of
30%. By ensuring consistency, quality, and maintaining its organic
commitment, Whistler has achieved
average selling prices in excess of 50% greater than the average
Canadian medical market, and maintains a similar premium to
provinces for adult-use.
- Organic Certified EU GMP compliant production:
Whistler is certified by the
Fraser Valley Organic Producers Association (FVOPA) and conforms to
International Organic Growing Standards. Whistler's second facility is constructed in
compliance with EU GMP standards which, upon certification, will
enable the Company to supply organic certified cannabis products to
the European market.
- Iconic Whistler brand: Through the premium quality of
its products, as well as the location association with Whistler, British Columbia, which receives
over 2.7 million visitors annually and consistently ranks as one of
the top global travel destinations, Whistler has established an iconic brand that
resonates strongly across Canada
and international markets.
- Broad product portfolio: Whistler has commercialized more than 30
flower varieties and strain-specific oil products, from an
extensive genetics bank of over 150 strains.
- Further strengthened presence in Western Canada: Already one of the
strongest performing companies in the Western Canadian adult-use
markets along with the Aurora, AltaVie and San Rafael '71 brands,
Whistler will further add a
premium organic certified brand with exceptional traction and
visibility in British Columbia,
Canada's third most populous province.
- Whistler's growing domestic
footprint: In addition to its existing supply arrangements in
British Columbia, Saskatchewan and the Yukon, Whistler has received product requests from
Alberta, Manitoba, and Ontario.
- Organic certified large-scale extraction: Whistler has differentiated large-scale
cold-water extraction technology and processes, creating a full
suite of organic certified oil products (including THCA, CBG, and
high CBD oils).
Management Commentary
"This transaction adds an iconic, organic certified BC-based
brand with exceptional traction and a significant price premium in
both the medical and retail markets," said Terry Booth, CEO of Aurora. "We intend to
accelerate the completion of Whistler's Pemberton expansion project, and leverage our
domestic and international distribution channels to increase market
reach for their exceptional products. Whistler has established leadership in the
organic cannabis market, and we look forward to welcoming
Christopher and his team to the Aurora family."
Christopher Pelz, CEO and Founder
of Whistler, added, "With its
commitment to the highest product quality standards, as well as its
large footprint in both the Canadian and international cannabis
markets, Aurora is the ideal partner for Whistler to enhance our growth and margin
profile. We feel there is a strong cultural fit, and believe that
Aurora is the right home for us to maintain our organic craft
cultivation identity, while being able to leverage the resources
and capabilities of a large and rapidly growing global
company."
Neil Belot, Chief Global Business
Development Officer of Aurora, added, "Whistler, the longest operating
certified organic cannabis producer in Canada, has an exceptional track record built
on the consistent delivery of premium user experiences. This has
resulted in strongly-rated products that command among the highest
prices in the Canadian adult consumer use industry, targeting the
premium organic craft segment in both the consumer and medical
markets. Furthermore, as the only cannabis producer in the
world-renowned resort town of Whistler,
British Columbia, the company has developed broad brand
appeal, both across Canada and
internationally."
Transaction
The all-share transaction includes certain milestone payments in
relation to Whistler achieving
certain operational objectives. Including these milestone payments,
the all-share transaction values Whistler at up to $175
million.
The closing of the transaction is subject to customary closing
conditions, including execution of definitive documentation,
completion of satisfactory due diligence, receipt of approval of
the shareholders of Whistler, and
receipt of applicable third party and regulatory approvals and the
satisfaction of other conditions customary in transactions of this
nature.
Stoic Advisory Inc. is acting as financial advisor and Norton
Rose Fulbright Canada LLP is acting as legal advisor to Whistler
Medical Marijuana Corp.
McMillan LLP is acting as legal counsel to Aurora.
About Aurora
Headquartered in Edmonton, Alberta,
Canada with funded capacity in excess of 500,000 kg per
annum and sales and operations in 22 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 low cost. Intended to be replicable and
scalable globally, our production facilities are designed to
produce cannabis of significant scale, with high quality,
industry-leading yields, and low per gram production costs. Each of
Aurora's facilities is built to meet EU GMP standards, and its
first production facility, the recently acquired MedReleaf Markham
facility, and its wholly owned European medical cannabis
distributor Aurora Deutschland, 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 15 wholly
owned subsidiary companies – MedReleaf, CanvasRX, Peloton
Pharmaceutical, Aurora Deutschland, H2 Biopharma, Urban Cultivator,
BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics,
Anandia Labs, HotHouse Consulting, MED Colombia, Agropro, Borela,
and ICC Labs – Aurora is distinguished by its reputation as a
partner and employer of choice in the global cannabis sector,
having invested in and established strategic partnerships with a
range of leading innovators, including: 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), Capcium Inc. (private), Evio Beauty
Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC:
CTTH), and Alcanna Inc. (TSX: CLIQ).
Aurora's Common Shares trade on the TSX and NYSE under the
symbol "ACB", and are a constituent of the S&P/TSX Composite
Index.
For more information about Aurora, please visit our investor
website, investor.auroramj.com
Terry Booth, CEO
Aurora Cannabis Inc.
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 the
completion of definitive agreements and closing 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.
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SOURCE Aurora Cannabis Inc.