Proposed Regulations Create Framework for Vibrant Market with Exceptional Growth Prospects
VANCOUVER, Nov. 22, 2017 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (TSX: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) today commented that the Company is encouraged by the proposed approach to the regulation of cannabis, as published by Health Canada on 21 November 2017. The document, presently at the consultative stage, proposes a wide range of new regulations to create a vibrant and inclusive cannabis industry that is anticipated to grow rapidly into multi-billion dollar sector of the economy.
The new consultation document offers a number of proposals as to how the cannabis industry is to function under Canada's new Cannabis Act. When adopted in this form, the new regulations strongly validate the strategic choices made by Aurora, such as the Company's investments in and partnerships with Hempco (TSX-V: HEMP), and Radient Technologies (TSX-V: RTI) that, among others, allow for the production and sale of CBD from hemp. Additionally, of great importance for Aurora's partner Radient, a new class of licenses would be introduced, including that of Licensed Processor. The proposed new regulations also validate Aurora's horizontal diversification strategy. Under these proposals, Health Canada is enabling Licensed Producers to enter a market segment with over three million adult use customers, and compete with the grey market by being able to provide a much more broadly diversified product offering.
The proposed regulations would also formalize the ability of licensed producers to continue exporting cannabis products for medical and scientific research purposes. Aurora, through its wholly owned subsidiary Pedanios in Germany, owns the largest wholesale distributor of cannabis in the EU. Aurora is therefore exceptionally well positioned to dramatically grow in this market with potentially over 400 million people, driven in part by the ability to rapidly increase the production of GMP flower, oils, and CBD-based products.
Neil Belot, Chief Global Business Development Officer, added, "We are delighted that under these proposals cannabis would be removed from the Controlled Drug and Substances Act, and would instead be subject to the Cannabis Act and its regulations. This is a historical day where our federal government has recommended cannabis no longer be classified as a narcotic. We are also pleased with the proposed freedom for patients to choose the right medical cannabis supplier to meet their specific needs, and we will continue to be a leader in this space and provide the best patient experience possible. Finally, we appreciate that the proposal supports a broader inclusion of members of the community that under previous regulations were fully excluded from participating in an industry that they have righteously fought for."
"The proposed regulations, once implemented, further cement Canada's position as the absolute global leader in the cannabis sector," said Terry Booth, CEO. "When adopted, the new Act in this form would create an incredibly vibrant market, which fosters innovation and diversity and will allow for the pursuit of the incredible opportunities in both the medical and adult consumer markets. Aurora, through its diverse initiatives, innovations and strategic investments is exceptionally well positioned to pursue accelerated growth. The proposed broadening of the saleable product range to include pre-rolled cannabis, vaping solutions, concentrates, edibles, puts expanding and innovative companies such as Aurora in a prime position to pursue this multi-billion dollar opportunity."
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 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 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.
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 use of proceeds from the Offering and the Private Placement. 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: Cam Battley, Executive Vice President, +1.905.864.5525, firstname.lastname@example.org, www.auroramj.com; Marc Lakmaaker, Director, Investor Relations and Corporate Development, +1.647.289.6640, email@example.com
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”.