Mr. Terry Booth reports

AURORA CANNABIS ENTERS INTO GLOBAL SOFTGEL BUSINESS WITH CAPCIUM INC.

Aurora Cannabis Inc. and Capcium Inc. have signed a strategic agreement to produce high-quality cannabis-based softgels for patients. Additionally, Aurora has acquired a 19.99-per-cent ownership interest in Capcium by way of a non-brokered private placement for consideration of $10-million.

Capcium, a privately owned Montreal-based global leader in softgel manufacturing, has emerged as one of the leading manufacturers in the cannabis industry. Production of high-precision dosage controlled softgels is an extensive and complex process. Capcium, through its pharmaceutical and encapsulation experience, has developed expertise that is ready to be applied to the cannabis industry and deliver high-volume production capacity.

Capcium intends to use the proceeds from the Aurora investment to expand its cutting-edge cannabis softgel manufacturing business, which includes the construction and operation of a large, state-of-the-art facility, to be completed in Q4 2019.

In advance of this new Capcium facility, and to accelerate time to market, Capcium and Aurora have agreed to immediately establish a high-volume, state-of-the-art softgel manufacturing operation at Aurora Vie, the company's cannabis production facility in Pointe-Claire, Que. Softgel sales from this facility are anticipated to commence (subject to Health Canada approval) by the end of summer 2018. Capcium will be the exclusive manufacturer of Aurora's North American cannabis softgel products. The agreement also contemplates Capcium being the company's preferred global manufacturer of softgel cannabis products.

Management commentary

"This investment in Capcium reflects our strategic objective to further expand our differentiated, higher-margin product offerings," said Terry Booth, chief executive officer of Aurora. "Capcium's extensive know-how has enabled it to develop an advanced technology for the high-volume production of cannabis-based softgels. This provides us with a strong competitive advantage, positioning us well to build a leading position in the production and sale of value-added cannabis products globally. We are proud that Aurora quickly is becoming the partner of choice in the cannabis industry, and we look forward to capitalizing with Capcium on the significant opportunity that softgels represent."

Sylvain Duvernay, chief executive officer of Capcium, added: "Teaming up with what we believe to be the most innovative licensed producer with excellent international distribution channels greatly enhances our growth prospects. We are delighted that Aurora and Capcium will become long-term partners, and look forward to bringing Quebec-made softgel cannabis products to Canada and to the global markets."

Aurora and Capcium believe the benefits of the transaction are significant for all shareholders. Aurora's brand leadership, quality products, customer care, innovation and deep product knowledge will be a strong complement to Capcium's well-established softgel manufacturing expertise. This deal will establish Quebec as a world leader for cannabis value-added products by leveraging the experience and expertise of two innovative companies with Quebec operations, while creating highly skilled Quebec-based employment in the rapidly expanding cannabis sector.

Terms of the investment

Aurora has made an initial $10-million investment in Capcium by way of a non-brokered private placement. The consideration paid by Aurora consists of $500,000 in cash and $9.5-million in common shares of Aurora at a five-day volume-weighted average trading price of Aurora's common shares on the Toronto Stock Exchange for the period ended June 6, 2018. Upon completion of the investment, Aurora will own approximately 19.99 per cent of the issued and outstanding common shares of Capcium.

The private placement is subject to the final approval of the Toronto Stock Exchange and is not subject to any financing or due diligence conditions.

About Aurora Cannabis Inc.

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, Que., 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 kilograms per annum of cannabis.

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