Partnership to Optimize
Environmentally-Friendly Organic Waste Digester for Cannabis
Waste
Vancouver, BC – December 19,
2017 -- InvestorsHub NewsWire --
Aurora Cannabis Inc. (the “Company” or “Aurora”) (TSX:
ACB) (OTCQB:
ACBFF) (Frankfurt: 21P; WKN: A1C4WM)
and Micron Waste Technologies Inc. (“Micron”) (CSE:
MWM,
OTC: MICWF, Frankfurt:
7FM2), a developer of proprietary digester solutions for the
treatment of organic waste, today announced that the companies have
signed a non-binding term sheet for Aurora to make a strategic
investment in Micron, and for both companies to collaborate on the
optimization of Micron’s technology for the treatment of organic
waste generated in the cultivation and production of cannabis
products.
Micron has developed a new
technology, based on aerobic digestion and subsequent treatment,
that converts organic waste into clean water that meets municipal
effluent discharge standards. The effluent from currently available
digester-based treatment systems of organic waste does not meet
municipal discharge standards and requires costly further
treatment. Many generators of organic waste elect, instead, to use
municipal landfill sites for their organic waste, which is costly
and has a negative impact on the environment. The merits of
Micron’s technology have been successfully demonstrated with a
grocery supermarket chain located in British Columbia, Canada, and
Micron has entered into an Memorandum of Understanding with the
group to plan for additional installation of Micron’s organic waste
digester units at other locations in BC.
Collaboration
Agreement
Under the terms of the
agreement, which the companies anticipate finalizing soon, Micron
will install its technology at one of Aurora’s cultivation
facilities, where both companies will work on optimizing Micron’s
digester technology to deliver a commercially-ready design
specifically for the cannabis industry.
Aurora shall have the option,
upon successful completion of the optimization program and proven
viability, to sign a definitive supply agreement with Micron for
the purchase of Micron`s organic waste digestion solution for each
of its cultivation facilities at a preferred pricing
structure.
In consideration of Aurora’s
participation in the optimization process, and pursuant to the
terms of a royalty agreement to be entered into between the
parties, Micron shall pay to Aurora a royalty equal to 4% of gross
revenues generated by Micron from the sale, lease and/or support
services agreement pertaining to digesters sold to companies in the
business of cultivating or processing cannabis. Micron shall retain
all intellectual property pertaining to its digestion
system.
Strategic investment &
Investor Rights Agreement
Under the terms of
the agreement, once finalized, Aurora will have the right to
subscribe for up to 6,000,000 shares of Micron at a subscription
price of $0.34 per share for aggregate subscription proceeds of
$2,040,000 million in accordance with the terms and conditions of a
subscription agreement to be entered into among the parties,
representing a 9% interest in the Corporation on a non-diluted
basis immediately post-investment. Upon the first successful sale
of a digester within the cannabis industry, Micron shall issue a
further 2 million shares to Aurora.
Aurora shall have
the right to participate in any future offerings of equity or debt
convertible into equity of Micron to allow Aurora not to be diluted
in its ownership interest of Micron.
Management
Commentary
“The investment in and
collaboration with Micron reflect our commitment to innovation in
the cannabis sector, aimed in this case at achieving improved
operational economics, as well as a superior, ‘greener’ approach to
organic waste management,” said Terry Booth, CEO of Aurora. “The
treatment and disposal of organic waste in the cannabis industry is
a time consuming and costly exercise that is subject to strict
regulation by Health Canada. Micron’s solution promises to be a
very elegant, highly efficient and low-cost alternative that will
also have a positive impact on the environment. In making this
investment, we anticipate benefiting not only from the positive
impact on our operations, but also by being exposed to the upside
potential of Micron’s commercial development. We look forward to
collaborating with Micron in furthering the market reach of this
very promising technology.”
Rav Mlait, CEO of Micron,
added, “We are delighted to partner with the cannabis industry’s
innovation leader and enter the remarkably dynamic, fast-growing
cannabis sector. Furthermore, Aurora’s investment provides
additional funds to accelerate diversification into other sectors,
such as supermarkets, quick-serve restaurants, agricultural
operations and hotels, which are all faced with high organic waste
disposal costs. While our goal has always been to deliver solutions
that have a positive impact on the environment, the only way to
truly make a difference is by having a value proposition that
provides a strong commercial rationale for adoption. We have proven
that we have such a solution through our demonstration project in
Richmond, BC, and are well positioned to execute on our aggressive
growth strategy.”
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
Micron Waste Technologies Inc.
Micron Waste Technologies Inc is a
well funded technology company. The Company’s organic waste
digestion system is designed to manage organic waste on-site,
converting it into clean water. The Company’s aerobic digester has
micro-oxygen cubicles technology to enhance the digestion
efficiency of microorganisms by up to 95%, with the remaining 5% of
undigested particles undergoing further treatment, resulting in
clean water effluent that meets municipal effluent discharge
standards. Micron’s technology is an ideal solution to handle
organic waste on-site in view of the drive for further cost
efficiencies, as well as ever stricter legislation being
implemented to prohibit organic waste from entering landfill sites
around the world. Please visit our website at www.micronwaste.com
for further information. Micron is a
public company with listings on the CSE: MWM, OTC: MICWF, and in Frankfurt:
7FM2.
On behalf of the Boards of
Directors,
AURORA CANNABIS
INC.
MICRON WASTE TECHNOLOGIES INC.
Terry
Booth
Rav Mlait
CEO
CEO
###
Further
information:
FOR
AURORA
Cam
Battley
Marc Lakmaaker
Executive Vice
President
Director, Investor Relations
and
+1.905.864.5525
Corporate Development
cam@auroramj.com
+1.647.269.5523
www.auroramj.com
marc.lakmaaker@auroramj.com
FOR
MICRON
Investor Relations
+1.844.318.8216
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 the optimization
process and the performance of the Aurora and Micron.
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. Aurora and
Micron 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.
Neither TSX or
CSE, nor their Regulation Services Provider (as that term is
defined in the policies of Toronto Stock Exchange and the CSE)
accept responsibility for the adequacy or accuracy of this
release.
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