Lachute,
Quebec Site will be Company's Fourth Advanced-Technology
Production Facility
TSX: ACB
VANCOUVER, Nov. 23, 2017 /CNW/ - Aurora Cannabis Inc. (the
"Company" or "Aurora") (TSX: ACB) (OTCQB: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) today announced
that the Company has entered into a binding share purchase
agreement to acquire H2 Biopharma Inc. ("H2"). H2 is a late stage
ACMPR applicant based in Lachute,
Quebec.
H2 is currently completing a state-of-the-art, purpose-built
48,000 square foot cannabis production facility, less than an hour
from Montreal (the "Lachute
Facility"), and near the Pierre-Elliott Trudeau International
Airport. Upon completion, which is anticipated before the end of
2017, the Lachute Facility is projected to produce approximately
4,500 kilograms of high-quality cannabis per annum. The
facility is located on 46 acres (19 hectares) of land (the
"Property"), which H2 has the right to acquire for $136,000. The Property has access to ample
low-cost power, water and infrastructure to support a very
significant capacity expansion – up to or beyond the scale of the
Company's 800,000 square foot Aurora Sky facility, currently under
construction at Edmonton
International Airport.
The latest Aurora acquisition will be the Company's fourth
production facility in Canada -
and second site in Quebec, in
addition to its 40,000 square foot production "Aurora Vie" facility
in Pointe-Claire, on the island of
Montreal.
"This is another outstanding transaction that further extends
Aurora's lead in establishing advanced-technology, ultra-efficient,
low-cost production via purpose-built facilities," said
Terry Booth, CEO. "The Lachute
Facility, which is 80% complete and has the land and utilities
required for significant additional expansion, is fully consistent
with the Aurora Standard, and will be instrumental in delivering
high quality products for the Quebec, Canadian and overseas markets. Our
participation in the final design and construction of H2's purpose
built facility will allow us to leverage our experience,
technology, and systems to improve performance and yields beyond
the original design. Our recent acquisition of Larssen Ltd. and the
formation of Aurora Larssen Projects will play an instrumental role
in this respect, and we look forward to a rapid completion of this
project in line with the exceptional execution we have shown at
Aurora Vie, our other Quebec
project."
A central fact of the domestic and global emerging markets is
the enormous excess of demand over supply for legal, regulated
cannabis products. By leveraging our powerful cash position and
excellent liquidity, as well as our experience building the most
technologically advanced cannabis facilities, Aurora has a unique
ability to acquire top-notch production and distribution assets at
attractive valuations, thereby rapidly expanding capacity to meet
surging Canadian and global demand."
André Jerome, CEO of H2, added, "We are proud to be joining
forces with Aurora, a trail blazer in Canada and around the world in shaping the
legal cannabis industry. With the backing of Aurora's operational
and cultivation know-how, technological innovation and financial
strength, we are confident the Lachute site will be a showcase cannabis
production facility, and an important asset in the Company's
execution of its domestic and international growth strategy."
Consideration
The acquisition is subject to approval by Toronto Stock
Exchange, and other customary closing conditions. An initial
payment of $10 million will be made,
with further payments in consideration of the acquisition to be
made upon the achievement of certain performance related
milestones, including completion of the Facility, the granting of
cultivation and sales licenses by Health Canada, and municipal
approval for expansion of the facility. The total contingent
consideration for the acquisition of H2, including closing and
milestone payments, is $25 million
and all payments will be satisfied through the issuance of Aurora
common shares.
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.
In addition, the Company holds approximately 9.6% of the issued
shares (12.9% on a fully-diluted basis) in leading extraction
technology company Radient Technologies Inc., based in Edmonton, and holds approximately 22% of
Edmonton-based Hempco Food and
Fiber with the ability to increase holdings to over 50%.
Furthermore, Aurora is the cornerstone investor with a 19.9% 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".
On behalf of the Board of Directors,
AURORA CANNABIS INC.
Terry Booth
CEO
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 closing of the
Acquisition and the performance of the Company, including, but not
limited to, H2 Biopharma. 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. 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.
SOURCE Aurora Cannabis Inc.