VANCOUVER, Aug. 18, 2016 /CNW/ - Aurora Cannabis Inc. (CSE: ACB) (FRANKFURT: 21P) (WKN: A1C4WM) (OTCQB: ACBFF) ("Aurora" or the "Company") is pleased to announce that, further to its press release of August 10, the Company has completed the acquisition of CanvasRx Inc. (the "Transaction").
The transaction will combine Canada's fastest growing licensed producer ("LP") with the country's largest medical cannabis patient outreach and counselling service by location (currently, at 17 locations), and leading source of medical cannabis patients into the MMPR. The integration of CanvasRx, which has helped over 10,000 patients register with licensed producers, will also provide Aurora with access to one of the largest and most robust databases on cannabis strains and related efficacy data, as well as information on physician preferences and ordering patterns. The Company will utilize these proprietary assets to develop new services for patients, and tailor its product pipeline to offer an industry-leading and demand matching selection of products and strains.
Additionally, the acquisition is anticipated to deliver synergies in reaching out to the medical community. Through CanvasRx, the Company will be actively working to increase the number of physicians who are knowledgeable about medical cannabis and the strict and controlled nature of patient supply procedures. Once established, physician relationships tend to be sticky, contributing to further growth.
"This transformational acquisition creates a win-win-win scenario for patients, CanvasRx and Aurora," said Terry Booth, Aurora CEO. "We believe offering a reliable supply of effective, in-demand strains will make a strong contribution towards consistent long-term growth of our patient base and revenues. CanvasRx brings with it a deep understanding of our market, a well-established footprint in the important Ontario market, and a growth platform to expand our interactions with the medical community, all of which represent important differentiators from other LPs."
Joseph del Moral, Co-founder of CanvasRx, stated, "One of the biggest challenges the industry has faced since inception is inconsistent supply of product. By partnering with Aurora, and helping Aurora tailor its product offering to meet the needs of patients, CanvasRx will be better able to help patients get access to the medicine they need, and do so on a timely basis. The transaction will help us expand our footprint, starting with Calgary, where we will be opening our first location in September. Through nationwide expansion, we will be able to serve many more patients in need."
Under the terms of the transaction agreement, the purchase price includes an upfront closing cash payment of $1,575,000, and additional future consideration based on the achievement of certain performance milestones. In conjunction with the closing of the transaction, the subscription receipts held in escrow with Canaccord Genuity will now be converted into units in the placement and released to investors. Additionally, CanvasRx has achieved two performance milestones, in relation to which two further payments totaling $8,725,000 have been made, consisting of $1,575,000 in cash and $7,150,000 in common shares.
The remaining performance milestones include certain revenue and patient metrics, as well as the establishment of additional counselling locations. Post-closing milestone payments may be satisfied in cash or common shares, at the election of Aurora. As part of the transaction, CanvasRx will maintain its commitment to being an open platform, enabling each patient to register with the LP of his or her choice.
Booth concluded, "We believe that this transaction will help us deliver on our commitment to long-term value creation for our shareholders. This is a truly significant turning point in the cannabis sector, and a transaction that sets up Aurora to further build on its position as one of the dominant LPs in Canada."
Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical marijuana pursuant to the Marihuana for Medical Purposes Regulations and operates a 55,200 square foot, expandable, state-of-the-art production facility in Mountain View County, Alberta, Canada. Aurora trades on the Canadian Securities Exchange under the symbol "ACB".
CanvasRx is Canada's leading counselling and outreach service provider that helps patients learn about how to safely and effectively use medical cannabis, select a strain from the hundreds available in Canada and register with their choice of licensed producer. CanvasRx currently has 17 physical locations, and to date has helped over 10,000 patients connect with licensed producers for the supply of medical cannabis. CanvasRx also plays an important role in the ongoing education of physicians interested in learning more about medical cannabis and the procedures under applicable regulations that enable patients to obtain cannabis.
On behalf of the Board of Directors, AURORA CANNABIS INC.
Terry Booth, CEO
This news release contains statements about the Company's expectations regarding production capacity, production yields and other aspects of its anticipated future operations that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. Such factors include but are not limited to the Company's ability to obtain the necessary financing and the general impact of financial market conditions, the yield from marijuana growing operations, product demand, changes in prices of required commodities, competition, government regulations and other risks set out in the Company's management's discussion and analysis filed on SEDAR.
The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
We seek Safe Harbour.
SOURCE Aurora Cannabis Inc.
For further information: Cam Battley, Senior VP Communications and Medical Affairs, +1.905.864.5525, [email protected], www.auroramj.com; Marc Lakmaaker, NATIONAL Equicom, +1.416.848.1397, [email protected]