Aurora Completes $15 Million Debenture Offering, Improves Balance Sheet by Replacing High Interest Secured Debt

/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/

CSE:ACB

VANCOUVER, Sept. 28, 2016 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (CSE: ACB) (OTCQB: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) is pleased to announce, further to its news release dated September 16, 2016, that it has completed the brokered private placement (the "Offering") of 10.0% unsecured convertible debentures (the "Debentures") of the Company with Canaccord Genuity Corp. (the "Agent") for gross proceeds of $15 million.

Pursuant to an enhanced finance strategy, the Company is leveraging a portion of the Debentures to immediately improve its balance sheet and replace $4 million of high interest and senior secured debt. Furthermore, certain onerous debt covenants and compliance reporting have now been eliminated.

"This financing provides Aurora with additional financial flexibility and a significantly improved balance sheet, and enables us to further increase our focus on reaching profitability and building long-term shareholder value", said Terry Booth, Aurora's Chief Executive Officer. "With an improved working capital position and increasing revenues, Aurora continues to strengthen our financial foundation as we enter a pivotal and exciting period in the development of the cannabis sector."

The Debentures are unsecured obligations of the Company and bear interest from the date of closing at 10.0% per annum, payable semi-annually on June 30 and December 31 of each year. The Debentures will mature on March 28 2018 (the "Maturity Date").

The Debentures are convertible at the option of the holder into common shares of the Company at any time prior to the close of business on the Maturity Date, at a conversion price of $1.15 per common share (the "Conversion Price"). Holders converting their Debentures will receive accrued and unpaid interest thereon, up to, but excluding, the date of conversion.

If, prior to the Maturity Date, the VWAP of the common shares on the Canadian Securities Exchange for 10 consecutive trading days equals or exceeds $2.00, the Company may force conversion of all of the principal amount then outstanding of the Debentures at the Conversion Price, upon giving Debenture holders 30 days advance written notice, in accordance with the conversion terms.

The Company intends to use the net proceeds of the Offering for general working capital purposes and for reducing certain secured debt obligations.

All securities issued in connection with the Offering, which include certain insider participation, are subject to a four month hold period expiring January 29, 2017. 

An insider of the Company was issued Debentures in the aggregate principal amount of $25,000, which constituted a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance to the insider is exempt from the formal valuation and the minority shareholder approval requirements of MI 61-101 as the fair market value of the Debentures issued to or the consideration paid by such person did not exceed 25% of the Company's market capitalization.

About Aurora

Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical marijuana 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 Canadian Securities Exchange under the symbol "ACB".

On behalf of the Board of Directors,
AURORA CANNABIS INC.

Terry Booth
CEO

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 Corporation 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.

The CSE or other regulatory authority has not reviewed, approved or disapproved the contents of this press release. We seek Safe Harbour.

SOURCE Aurora Cannabis Inc.

Cam Battley, Senior VP Communications and Medical Affairs, +1.905.864.5525, [email protected], www.auroramj.com; Marc Lakmaaker, NATIONAL Equicom, [email protected], +1.416.848.1397