Aurora Cannabis Participates in IPO for The Green Organic Dutchman

TSX: ACB

EDMONTON, May 2, 2018 /CNW/ - Aurora Cannabis Inc. ("Aurora" or the "Company") (TSX:ACB) (OTCQB:ACBFF) (Frankfurt: 21P; WKN:A1C4WM), today announced the Company is participating in the IPO of The Green Organic Dutchman ("TGOD") (TSX: TGOD), purchasing 17.5% of the IPO issue, or 6.3 million units, priced at $3.65 per unit, for a total investment of $23.1 million. Each unit consists of one common share and one half of one common share purchase warrant exercisable at $7.00 per common share.

The investment follows an earlier strategic investment completed in January 2018, and upon completion, Aurora will hold a total of 39.7 million common shares. The Company furthermore owns 16.7 million share purchase warrants exercisable at $3.00, and will add a further 3.2 million share purchase warrants exercisable at $7.00 per share. This reflects an ownership interest of 17.6% on an undiluted basis. Aurora has an option to increase its ownership to over 50% in relation to TGOD achieving certain operational and financial milestones.

TGOD is currently completing a 14,000 kg per year facility in Ancaster, as well as is constructing an 820,000 square foot, 104,000 kg per annum, ALPS-designed (Aurora Larssen Projects Inc.) high-technology cannabis facility in Valleyfield, Quebec. As announced in the companies' press release of January 16, 2018, the companies have also entered into a supply contract, providing Aurora with the right to purchase 20% of TGOD's annual production of organic cannabis from TGOD's Ancaster and Valleyfield facilities. Consequently, Aurora anticipates being able to procure in excess of 23,000 kg per annum of premium organic products once TGOD's Valleyfield and Ancaster facilities are completed and at full capacity. If the Company increases its ownership interest further, Aurora has the right to also increase the supply quantities sourced from TGOD.

Management commentary

"With over 23,000 kg per annum of premium organic product secured, and a significant appreciation of our original investment, our partial ownership of TGOD is both strategically and financially very beneficial for Aurora shareholders," said Terry Booth, CEO. "We believe the TGOD team is executing on a well-diversified strategy that we are proud to support and help de-risk through the involvement of ALPS. The ALPS-designed TGOD facility will meet the "Sky Class" standard established by Aurora - applied in the construction of the Aurora Sky, Aurora Nordic and Aurora Sun facilities - designed to deliver large-scale production of consistently high product quality, at ultra-low production costs." 

About Aurora

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 hear 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 19.88% ownership interest in Liquor Stores N.A., ("LIQ") 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

On behalf of the Boards of Directors,                                    

AURORA CANNABIS INC.
Terry Booth 
CEO                                                                                        

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.

Marc Lakmaaker, Director, Investor Relations and Corporate Development, +1.647.269.5523, [email protected], www.auroramj.com; Craig MacPhail, NATIONAL Equicom, [phone], [email protected]