TSXV:ACB
/NOT FOR DISSEMINATION IN THE UNITED
STATES OR THROUGH U.S. NEWSWIRE SERVICES/
VANCOUVER, Feb. 28, 2017 /CNW/ - Aurora Cannabis Inc.
(the "Company" or "Aurora") (TSXV: ACB) (OTCQB:
ACBFF) (Frankfurt: 21P; WKN:
A1C4WM) is pleased to announce that it has completed its
previously-announced bought deal private placement (the
"Offering") of units (the "Units") of the Company
with a syndicate of investment dealers led by Canaccord Genuity
Corp. and including Cormark Securities Inc., Eight Capital., Mackie
Research Capital Corporation and GMP Securities L.P. (collectively,
the "Underwriters") for gross proceeds of $75 million.
The Company issued 33,333,357 Units pursuant to the Offering at
a price of $2.25 per Unit. Each
Unit is comprised of one common share of the Company (a "Common
Share") and half of one Common Share purchase warrant (each
whole Common Share purchase warrant, a "Warrant"). Each
Warrant is exercisable to acquire one Common Share (a "Warrant
Share") for a period of two years following the date hereof at
an exercise price of $3.00 per
Warrant Share, subject to adjustment in certain events. The
Warrants will be subject to acceleration if the volume weighted
average price of the Common Shares on the TSX Venture Exchange (the
"TSX-V") (or such other exchange as the Common Shares
of the Company may then be trading on) equals or exceeds
$4.50 for 10 consecutive trading days
following the date that is four months and one day following the
date hereof.
In connection with the Offering, the Underwriters received a
cash commission of 6% of the gross proceeds of the Offering not
including subscriptions received from purchasers on the Company's
president's list, and 3% of the aggregate gross proceeds of the
Offering on subscriptions received from purchasers on the
president's list. As additional compensation, the Company issued to
the Underwriters compensation warrants entitling the Underwriters
to purchase up to 1,865,249 compensation units (each a
"Compensation Unit") for a period of two years following the
date hereof at an exercise price of $2.25 per Compensation Unit, subject to
adjustment in certain events. Each Compensation Unit is exercisable
to acquire one Common Share and one-half of one Warrant. The
Warrants issuable upon exercise of the Compensation Warrants will
be issued on the same terms as the Warrants issued under the
Offering.
The Company intends to use the net proceeds of the Offering for
facility expansion of its Leduc County facility and general working
capital purposes.
All securities issued in connection with the Offering, which
include certain insider participation, are subject to a four month
hold period expiring June 29,
2017.
Six insiders of the Company subscribed directly and indirectly
for 999,600 Units, 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 issuances to the
insiders are exempt from the formal valuation and the minority
shareholder approval requirements of MI 61-101 as the fair market
value of the Units issued to or the consideration paid by such
persons did not exceed 25% of the Company's market
capitalization.
CanvasRx Milestone Payment
Additionally, the Company issued 1,845,500 Common Shares, at a
deemed price of $2.07 per Common
Share, to the vendors of CanvasRx Inc. ("CanvasRX") in
accordance with CanvasRX achieving certain earn-out payment
milestones for the period ended December 31,
2016, as set out in the share purchase agreement
previously announced on August 10,
2016.
About Aurora
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, and is currently
constructing a second 800,000 square foot production facility,
known as "Aurora Sky", at the Edmonton International Airport. The Aurora Sky
project has secured advanced technology from the most renowned
design and construction suppliers in the
Netherlands. Aurora's common shares trade on the TSX-V 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 applicable securities laws,
including statements about the Company's proposed use of the
Offering proceeds. 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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Aurora Cannabis Inc.