Establishes Import, Export, and Wholesale
Distribution Pipeline in European Union, Executing on Global
Expansion Strategy
TSXV: ACB
VANCOUVER, May 26, 2017 /CNW/ - Aurora Cannabis Inc.
(the "Company" or "Aurora") (TSXV: ACB) (OTCQX: ACBFF)
(Frankfurt: 21P; WKN: A1C4WM) is
pleased to announce its acquisition of Pedanios GmbH ("Pedanios"),
a leading wholesale importer, exporter, and distributor of medical
cannabis in the European Union ("EU").
Pedanios, a federally licensed medical and narcotic wholesale
and GMP inspected narcotic import company, holds all relevant
licenses and permits, and has been successfully importing,
exporting, and distributing cannabis for medical purposes since
December 2015, into and within the
EU.
In January 2017, German
parliamentarians unanimously passed a new medical cannabis law,
which appointed physicians as gatekeepers to access, established
pharmacies as the point of sale, and introduced full insurance
cost-coverage for medical cannabis patients across the country. In
March 2017, when the new law came
into force Pedanios' monthly sales immediately doubled and growth
continues to accelerate as Germany's 80 million citizens begin to benefit
from the improvements to patient access guaranteed by the new
law.
Pedanios wholesales medical cannabis to a growing number of
pharmacies - over 750 as of today - and offers the widest selection
of products of any distributor in the German market, including ten
of the fourteen products approved by the Bundesopiumstelle, a body
of the German federal Health Ministry. All Pedanios' existing
supply contracts will remain in place.
"This is a transformational acquisition for Aurora, and a key
step in our aggressive international expansion strategy," said
Neil Belot, Aurora's Chief Global
Business Development Officer. "The transaction will ensure ongoing
and increasing high quality product is available to fuel Pedanios'
rapid growth, while positioning Aurora and Pedanios to seize upon
opportunities together in Germany
and the EU's emerging cannabis industry."
"Pedanios, with first mover success in the EU, has proven itself
as one of the world's most trusted and scalable importers,
exporters, and distributors of wholesale medical cannabis.
Patients, physicians, and pharmacies across the EU recognize the
Pedanios brand as the trusted source for high quality GMP certified
medical cannabis," said Terry Booth,
CEO. "The Pedanios team share Aurora's vision, our high standards,
and our intentions to play a leading role in shaping the future of
the global cannabis industry. In addition, because the average
market prices are higher in Germany than in Canada, we expect German sales to positively
impact our average sales price per gram."
"Canada and Germany are among the world leaders in medical
cannabis, and as trailblazers in our respective countries, Pedanios
and Aurora are well positioned to continue to drive innovation,
expand our distribution network, and capture significant global
market share," said Patrick
Hoffmann, Pedanios' Co-Founder and Executive Partner. "We
look forward to the synergies that our combined companies will
deliver to shareholders and stakeholders alike."
Under the terms of the purchase agreement, dated May 18, 2017, Aurora will pay a consideration to
holders of Class B securities of Pedanios approximately 3,421,756
common shares of Aurora, priced at $2.14 per share. In addition, a total
consideration of approximately $13,565,000 in cash and common shares is payable
to the holders of Class A common shares of Pedanios, which are held
by the two founders/Managing Directors of Pedanios who will
continue to run the company. The cash portion for the two founders
being $3,020,000 and the share
portion being 4,895,026 common shares of Aurora, priced at
$2.14 per share, of which 17%
will become free trading 4 months after closing, with the
balance becoming unrestricted in equal installments on a quarterly
basis over 27 months, commencing in February
2018. Total shares of Aurora being issued over 3 years
represent less than 2% of total shares outstanding. Aurora's cash
balance as of May 15, 2017 was
$165,000,000. Values herein have been
calculated based on an exchange rate of 1.51
Canadian dollars to every 1
Euros.
Pedanios, over the last 90 days, has achieved cash flow positive
operations, with gross revenues of approximately CAD$1.15 million, and costs of approximately
CA$1.00 million. Revenues for May, up to and including
May 26, 2017, were approximately
CAD$0.5 million, reflecting a 410%
increase in the daily sales pace as compared to average for the 8
months prior to the introduction of the new law, and an increase
over the April and March 2017
averages of 70% and 108%, respectively.
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, and has
acquired, and is undertaking completion of, a third 40,000 square
foot production facility in Pointe-Claire, Quebec, on Montreal's West Island. In
addition, the company 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'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 includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). 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.
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.