Exclusive Collaboration to Apply Breakthrough Extraction Technologies to Cannabis
VANCOUVER, Dec. 14, 2016 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (TSXV: ACB) (OTCQB: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) and Radient Technologies Inc. ("Radient") (TSXV: RTI) are pleased to announce that they have signed a memorandum of understanding ("MOU") to evaluate an exclusive partnership for the Canadian market with regard to the joint development and commercialization of superior and standardized cannabinoid extracts. As part of the MOU, Aurora will, subject to certain conditions precedent being satisfied, invest up to $2 million into Radient by means of a convertible debenture (the "Debenture").
Radient currently operates from a 20,000 square foot, GMP compliant, Natural Health Products Directorate (NHPD) licensed facility in Edmonton, Alberta, extracting natural ingredients for a range of industries including food and beverage, nutrition, supplements, pharmaceuticals, and cosmetics. Radient operates under strict quality controls and owns patented extraction technologies, originally developed by scientists at Environment Canada. These proprietary technologies have proven capable of producing high-quality standardized extracts with faster throughputs, improved yields, higher purities, and lower costs when compared to conventional extraction methods.
"Radient's technology promises a significant advance in both quality and efficiency of cannabis extract production," said Terry Booth, CEO. "This is especially important considering global market dynamics, which point to strong demand for cannabis derivative products. Importantly, Radient's extraction technology has also been proven to deliver superior preservation of aromatic compounds known as terpenes, which are key to the cannabis consumer experience and the Aurora Standard."
Denis Taschuk, President and CEO of Radient, stated, "We are very excited by this potential partnership with Aurora, given their leadership position in the medical cannabis space and the exceptional quality of their products. The combination of Aurora's recently announced capacity expansion with our proprietary high-throughput extraction technology has the potential to play an important role in meeting the fast-growing demand for quality cannabinoid extracts."
Aurora, one of the largest licensed producers of medical cannabis under Health Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR), recently began construction on an unprecedented 800,000 square foot production facility in Leduc County, Alberta. This facility, known as "Aurora Sky", is anticipated to be capable of producing in excess of 100,000 kg of high-quality, low-cost marijuana per year.
Under the terms of the MOU, Aurora will fund the collaboration through the Debenture. The Debenture will have a term of 2 years, bear interest at 10% per annum and will be convertible into units (each, a "Unit") of Radient at a conversion price of $0.14 per Unit. Each Unit will be comprised of one common share of Radient and one share warrant, exercisable within 24 months, for one common share of Radient at an exercise price of $0.33 per warrant. The issuance of the Debenture is subject to all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Radient extracts natural compounds from a range of biological materials using it proprietary "MAPTM" natural product extraction technology platform which provides superior customer outcomes in terms of ingredient purity, yield, and cost. From its initial 20,000 square foot manufacturing plant in Edmonton, Alberta, Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health, personal care and biofuel markets. Radient trades on the TSX Venture Exchange under the symbol "RTI". Visit www.radientinc.com for more information.
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) and operates a 55,200 square foot, expandable, state-of-the-art production facility in Mountain View County, Alberta, Canada. Aurora trades on the TSX Venture Exchange under the symbol "ACB".
On behalf of the Board of Directors,
On behalf of the Board of Directors
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. 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.
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SOURCE Aurora Cannabis Inc.
For further information: For Aurora Cannabis Inc.: Cam Battley, Executive Vice President, +1.905.864.5525, [email protected], www.auroramj.com; Marc Lakmaaker, NATIONAL Equicom, [email protected], +1.416.848.1397; For Radient Technologies Inc.: Denis Taschuk, President and CEO, [email protected], +1.780.465.1318; Prakash Hariharhan, Chief Financial Officer, [email protected], +1.780.465.1318