Meeting of Escrow Conditions Triggers Release of Funds to Alcanna
EDMONTON, May 10, 2018 /CNW/ - Further to its press release of February 5, 2018, Aurora Cannabis Inc. ("Aurora" or the "Company") (TSX:ACB) (OTCQB:ACBFF) (Frankfurt: 21P; WKN:A1C4WM), today announced that, following the satisfaction of the escrow release conditions related to Alcanna Inc.'s ("Alcanna" – TSX: CLIQ) (Formerly: Liquor Stores NA) previous private placement with Aurora, 2,300,000 subscription receipts were converted, on a one-for-one basis, into 2,300,000 common shares of Alcanna. Following the satisfaction of the escrow release conditions, $34.6 million were released from escrow to Alcanna. Following the conversion of the Subscription Receipts, Aurora holds an aggregate of 9,200,000 common shares, representing approximately a 25% ownership interest in Alcanna (on a non-diluted basis).
Alcanna intends to use the proceeds of the conversion and the private placement to establish and launch a leading brand of cannabis retail outlets, whereby it intends to create, initially, some 50 retail cannabis stores in prime retail locations in western Canada, both through conversion of existing stores and by establishing stores in new locations.
The Investment Agreement between Aurora and Alcanna included provisions for Alcanna to develop a retail cannabis network. Since Aurora's initial investment on February 14th, Alcanna has made considerable progress with the execution of its cannabis strategy, highlights of which are:
- Appointed Paul Wilson as President and COO of the cannabis division. Mr. Wilson has deep retail experience, including as CEO and President roles at Mark's Work Wearhouse, Canadian Tire, Princess Auto, Spence Diamonds and most recently Hold it All and Kit and Ace.
- Is in the process towards achieving its goal of opening up to 50 cannabis outlets before year end, with a number of stores opening for training and education prior to the legalisation of recreational cannabis,
- Will be implementing a comprehensive educational programme provided by Aurora for its cannabis retail employees to ensure Alcanna cannabis customers will enjoy a superior customer experience.
Further placement details
Under the previous private placement, Alcanna also issued to Aurora, for no additional consideration, two classes of common share purchase warrants, that provide Aurora with the right, up until August 14, 2019, to increase the Company's ownership interest to up to 40%. Further details can be found in Alcanna's filings on www.sedar.com
Aurora's wholly-owned subsidiary, Aurora 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", and a second 40,000 square foot high-technology production facility known as "Aurora Vie" in Pointe-Claire, Quebec on Montreal's West Island. In January 2018, Aurora's 800,000 square foot flagship cultivation facility, Aurora Sky, located at the Edmonton International Airport, was licensed. Once at full capacity, Aurora Sky is expected to produce over 100,000 kg per annum of cannabis. Aurora is completing a facility in Lachute, Quebec utilizing its wholly owned subsidiary Aurora Larssen Projects Inc.
The Company's wholly-owned subsidiary CanniMed Therapeutics Inc. is Canada's most experienced licensed producer of medical cannabis, with over 20,000 kg per annum in funded capacity. CanniMed forms the heart of Aurora's Medical Cannabis Centre of Excellence, aimed at product and market development.
Aurora also owns Berlin-based Pedanios, the leading wholesale importer, exporter, and distributor of medical cannabis in the European Union. The Company owns 51% of Aurora Nordic, which will be constructing a 1,000,000 square foot hybrid greenhouse in Odense, Denmark. 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 holds a 25% ownership interest in Alcanna Inc, ("TSX: SLIQ") who are developing a cannabis retail network in Western Canada. In addition, the Company holds approximately 17.23% of the issued shares in leading extraction technology company Radient Technologies Inc, and has a strategic investment in Hempco Food and Fiber Inc., with options to increase ownership stake to over 50%. Aurora is also the cornerstone investor in two other licensed producers, with a 22.9% stake in Cann Group Limited, the first Australian company licensed to conduct research on and cultivate medical cannabis, and a 17.62% stake in Canadian producer The Green Organic Dutchman Ltd., with options to increase to majority ownership.
Aurora's Common Shares trade on the TSX under the symbol "ACB", and are a constituent of the S&P/TSX Composite Index
Alcanna operates 229 retail liquor stores. Following receipt of final approval from the TSX in connection with Alcanna's name change from Liquor Stores N.A. Ltd. to Alcanna Inc., Alcanna's common shares and convertible subordinated debentures will trade on the Toronto Stock Exchange under the symbols "CLIQ" and "CLIQ.DB.B", respectively.
On behalf of the Boards of Directors,
AURORA CANNABIS INC.
Forward-Looking Information Cautionary Statement
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. Forward looking statements in release include statements regarding the proposed completion of a subsequent acquisition transaction. 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. A more complete discussion of the risks and uncertainties facing the Company appears in the Company's Annual Information Form and continuous disclosure filings, which are available at www.sedar.com.
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.
For further information: Marc Lakmaaker, Director, Investor Relations and Corporate Development, +1.647.269.5523, firstname.lastname@example.org, www.auroramj.com; Craig MacPhail, NATIONAL Equicom, +1 416-586-1938, email@example.com