Mr. Terry Booth reports

AURORA BOLSTERS ANANDIA'S TESTING CAPABILITIES THROUGH ACQUISITION OF CHEMI PHARMACEUTICAL

Aurora Cannabis Inc. has signed a binding share purchase agreement whereby Aurora has acquired all of the issued and outstanding common shares of privately held Chemi Pharmaceutical Inc., an Ontario-based laboratory specialized in providing high-quality analytics services to the pharmaceutical and cannabis industries, in a cash and share transaction comprising an undisclosed cash payment and share consideration of 83,299 shares paid on closing and 41,649 payable upon achievement of certain Chemi milestones.

Strategic rationale

Chemi has a Health Canada drug establishment licence enabling it to perform certified good-manufacturing-practice-compliant quality control analytical testing. In addition, Chemi has received U.S. Food and Drug Administration accreditation for its facility, which is the gold standard for global pharmaceutical testing. Acquiring Chemi with its drug establishment licence provides a critical prerequisite for applying for a cannabis drug licence, which is required for the development of cannabis therapies within the global medical cannabis market.

Strategically located adjacent to Pearson Airport in Mississauga, Ont., Chemi provides specialized cannabis testing across a broad set of parameters, including cannabinoid and terpene content. Chemi will be integrated into the company's wholly owned subsidiary, Anandia Laboratories Inc., expanding Anandia's leading analytics capabilities to meet client demand and diversifying its specialized testing services for both the medical and the upcoming edible and derivatives markets.

Following the acquisition of Anandia in August, 2018, Aurora integrated Anandia's plant science operations into the company's broader science team, enabling Anandia to maintain independence as an analytical service provider, with its operations run at arm's length to ensure client confidentiality.

As the Canadian cannabis industry matures, the cultivation and processing operations of licensed producers, including Aurora, have developed rapidly to meet the growing demand from medical patients and consumers alike. Expanding Anandia's analytical testing footprint will enable it to service a broader base of domestic and international clients while ensuring continued timelines and quality of its testing services for existing clients.

Management commentary

"The acquisition of Chemi will enable Anandia to extend our best-in-class testing services to a broader group of licensed producers and scale alongside our current client base while providing the scientific capabilities to establish an early mover advantage in the upcoming cannabis edibles testing market," said John Coleman, president of Anandia. "We look forward to integrating the Chemi team into our operations and working together to deliver the greatest scientific integrity to our clients."

Mariana Stavrikov, general manager of Chemi, added: "Chemi has been servicing the pharmaceutical, natural health product, cosmetic and veterinary industries for the last 20 years. As a trusted partner to a number of licensed producers, we are thrilled to join the Anandia team and expand our infrastructure and support to accommodate the incredible opportunity ahead in the cannabis industry."

Terms of the transaction

Aurora has purchased 100 per cent of the issued and outstanding shares of Chemi for a combination of cash and common shares of Aurora.

About Aurora Cannabis Inc.

Headquartered in Edmonton, Alta., Canada, with financed capacity in excess of 625,000 kilograms per annum and sales and operations in 24 countries across five continents, Aurora is one of the world's largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.

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