04:26:13 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Aurora Cannabis Inc
Symbol ACB
Shares Issued 401,926,151
Close 2017-11-22 C$ 6.42
Market Cap C$ 2,580,365,889
Recent Sedar Documents

Aurora Cannabis, Hempco close $3.2-million placement

2017-11-23 07:21 ET - News Release

Also News Release (C-HEMP) Hempco Food and Fiber Inc

Mr. Terry Booth of Aurora reports

AURORA AND HEMPCO ANNOUNCE CLOSING OF $3.2 MILLION PRIVATE PLACEMENT

Aurora Cannabis Inc. and Hempco Food and Fiber Inc. have completed a non-brokered private placement for gross proceeds of $3.2-million.

In relation to the placement, which was described in more detail in a joint news release dated Sept. 18, 2017, Hempco issued 10,558,676 units, at 30.75 cents per unit, to Aurora. Each unit consists of one Hempco common share and one non-transferable common share purchase warrant. Each warrant entitles Aurora to purchase one additional Hempco share at a price of 41 cents until the second anniversary of the closing date. Each warrant includes an acceleration clause, providing that if at any time beginning four months and one day after the date the warrant was issued the volume-weighted average price per Hempco share on the TSX Venture Exchange exceeds 65 cents for a period of 30 consecutive calendar days, Hempco will have a limited right to accelerate the expiration date of the warrants.

The securities issued in connection with the private placement are subject to a four-month hold period under applicable securities laws. Consequently the placement, Aurora now holds approximately 33.6 per cent of Hempco on a fully diluted basis. Additionally, Aurora has an option to purchase further shares from two of Hempco's principal owners, which, upon full exercise, would increase Aurora's take in Hempco to over 50 per cent.

Management commentary

"We are very pleased to now be a major investor in, and partner with Hempco," said Terry Booth, chief executive officer of Aurora. "The finalization of this investment coincides with the proposed Health Canada regulations that, once implemented, will allow Hempco to pursue its whole-plant-utilization vision, and launch new product lines. Our partnership will also allow both companies to benefit from being able to source this material to produce high-quality and lower-cost CBD products for sale in Canada and for export."

Charles Holmes, chief executive officer of Hempco, added: "The completion of the private placement marks a monumental milestone for Hempco and cements the relationship with Aurora as its strategic partner. We are now able to complete our new processing facility, implement our go-to-market strategy for new products, including our new line of animal feed products, and access new sales channels to further accelerate growth. With the proposed changes in legislation and the resources available to Hempco under the strong and supportive partnership with Aurora, we will now be able to dramatically accelerate the implementation of our commercial strategy and pursue growth aggressively, both within Canada and globally."

About Aurora Cannabis Inc.

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, known as Aurora Mountain, a second 40,000-square-foot high-technology production facility known as Aurora Vie in Pointe-Claire, Que., on Montreal's West Island, and is currently constructing an 800,000-square-foot production facility, known as Aurora Sky, at the Edmonton International Airport.

In addition, the company holds approximately 9.6 per cent of the issued shares (12.9 per cent on a fully diluted basis) in leading extraction technology company Radient Technologies, based in Edmonton, and is in the process of completing an investment in Edmonton-based Hempco Food and Fiber for an ownership stake of up to 50.1 per cent. Furthermore, Aurora is the cornerstone investor with a 19.9-per-cent stake in Cann Group Ltd., the first Australian company licensed to conduct research on and cultivate medical cannabis.

About Hempco Food and Fiber Inc.

For more than 12 years, Hempco has been a trusted and respected pioneer, innovator and provider of premier hemp seed foods. Hempco is committed to developing hemp foods, hemp fibre and hemp nutraceuticals, a tricrop opportunity for producers and processors. Hempco is expanding its processing ability to meet global demands in a 56,000-square-foot facility located at Nisku, Alta.

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