Mr. Terry Booth reports

AURORA CANNABIS ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND 2019 FISCAL YEAR

Aurora Cannabis Inc. has released its financial and operational results for the fourth quarter and fiscal year ended June 30, 2019.

"In 2019 Aurora took its place as the global leader in cannabis production, research, innovation and international market development. We are executing on all our strategic priorities," said Terry Booth, chief executive officer. "Our best-in-class cultivation methods allow us to grow consistent, high-quality cannabis at scale. Because of this, we've delivered solid revenue growth in the fourth quarter. We are working to extend our reach in the U.S. markets. Our partnership with the [Ulitmate Fighting Championship] is a basis to explore [cannabidiol-from-hemp] and hemp food products. We are also exploring additional opportunities and leveraging our strategic adviser. We are focused on building a sustainable, high-margin business while providing patients and consumers with access to safe and reliable medicine."

Glen Ibbott, chief financial officer, added: "We continue to see strong growth in cannabis revenues in both medical and consumer categories. Our cultivation execution continues to drive production costs lower and improve gross margins. Aurora's diversified product portfolio remains in demand with patients and consumers alike. With the Canadian launch of derivative products in the coming months, we have made the necessary investments to ensure readiness and focus on a variety of value-added products. We are very excited to supply an expanded consumer market with premium cannabis and new product forms."

Fourth-quarter 2019 highlights (unless otherwise stated, comparisons are made between fiscal Q4 2019 and Q3 2019 results and are in Canadian dollars):

• Net cannabis revenue up 61 per cent sequentially to $94.6-million:
  • Canadian consumer cannabis revenue up 52 per cent to $44.9-million;
  • Medical cannabis revenue up 10 per cent to $29.7-million;
  • Wholesale revenues of $20.1-million.
• Cash cost to produce per gram sold declined 20 per cent sequentially to $1.14 per gram in Q4 2019.
• Production volume increased 86 per cent sequentially to 29,034 kilograms.
• Gross margin on cannabis net revenue increased by 3 per cent to 58 per cent sequentially.
• Aurora's medical patient base expanded 10 per cent to 84,729 sequentially. As at the date of this release, Aurora has approximately 89,700 active registered patients, a further increase of 6 per cent.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $11.7-million represents an improvement of 68 per cent compared with $36.6-million in Q3 2019.

Subsequent events:

• Closed an amended and upsized $360-million secured credit facility, which includes an accordion feature that enables Aurora to upsize the facility by approximately $40-million;
• Sold its remaining 28,833,334 shares of The Green Organic Dutchman Holdings Ltd. (TGOD) at a price of $3 per share for aggregate gross proceeds of $86.5-million, representing an approximate 50-per-cent internal rate of return for the company.

Full-year fiscal 2019 highlights:

• Net revenue of $247.9-million, up 349 per cent compared with the prior year;
• Gross margin on cannabis net revenue of 55 per cent in fiscal 2019 versus 65 per cent in fiscal 2018;
• Kilograms produced and kilograms sold of 57,442 kg and 36,628 kg, up 920 per cent and 629 per cent, respectively, compared with fiscal 2018.

              Q4 2019 KEY FINANCIAL AND OPERATIONAL METRICS
                 ($ thousands, except operational results)

                                                  Q4 2019 (4)   Q3 2019

Net revenue (1)                                      $98,942    $65,145
Cannabis net revenue                                 $94,640    $58,652
Medical cannabis net revenue                         $29,651    $27,001
Consumer cannabis net revenue                        $44,882    $29,577
Wholesale bulk cannabis net revenue                  $20,107     $2,074
Gross margin before FV adjustments
on cannabis net revenue                                   58%        55%
Gross margin before FV adjustments
on medical cannabis net revenue                           60%        60%
Gross margin before FV adjustments
on consumer cannabis net revenue                          55%        50%
Gross margin before FV adjustments
on wholesale bulk cannabis net revenue                    61%        60%
Selling, general and administration expense          $72,869    $67,104
Adjusted EBITDA (2)                                 ($11,737)  ($36,572)
Balance sheet
Working capital                                     $227,802   $469,729
Cannabis inventory and biological assets (3)        $144,275   $118,023
Total assets                                      $5,502,830 $5,549,780
Operational results -- cannabis
Cash cost to produce per gram sold                     $1.14      $1.42
Active registered patients                            84,729     77,136
Average net selling price of
medical cannabis                                       $8.51      $8.51
Average net selling price of
consumer cannabis                                      $5.14      $5.48
Average net selling price of
wholesale bulk cannabis                                $3.61      $3.52
Kilograms produced                                    29,034     15,590
Kilograms sold                                        17,793      9,160

(1) Net revenue represents total gross revenue cannabis products effective
    Oct. 17, 2018.
(2) Adjusted EBITDA is calculated as net income (loss) excluding interest
    income (expense), accretion, income taxes, depreciation, amortization,
    changes in fair value of inventory sold, changes in fair value of
    biological assets, share-based compensation, foreign exchange, changes
    in fair value of financial instruments, gains and losses on deemed
    disposal, and non-cash impairment of equity investments, goodwill and
    other assets.
(3) Represents total biological assets and cannabis inventory, exclusive of
    merchandise, accessories, supplies and consumables
(4) During the three months ended June 30, 2019, the company recorded non-
    material year-end corrections to: (i) capitalize certain payroll, share-
    based compensation and borrowing costs, related to the construction of
    the company's production facilities that were incorrectly expensed in
    prior periods; and (ii) reverse items that had been overaccrued in prior
    periods. The net impact of these adjustments to Q4 2019 adjusted EBITDA
    was a $14.9-million reduction in reported operating expenses.

Consolidated net revenue increased 52 per cent to $98.9-million in Q4 2019 as compared with $65.1-million in the prior quarter. Consumer cannabis revenues were $44.9-million in Q4 2019, an increase of 52 per cent from the prior quarter and contributed 45 per cent to total consolidated net revenue. Canadian medical cannabis net revenues increased to $25.2-million in Q4 2019, up 9 per cent over the prior quarter. Revenue growth was primarily driven by additional production capacity and supply available for sale from Aurora Sky and Aurora River (Bradford).

Average net selling price of cannabis decreased by $1.08 per gram over the prior quarter from $6.40 in Q3 2019 to $5.32 in Q4 2019. This decrease is primarily attributable to the increase in sale volumes to consumer and bulk wholesale markets, which yield lower average net selling prices as compared with medical markets.

Gross margin on cannabis net revenue increased to 58 per cent in Q4 2019, compared with 55 per cent in the prior quarter. Gross margin improvement was driven by the continued decline in cash cost to produce per gram and higher gross margins achieved on bulk sales.

During Q4 2019, Aurora produced 29,034 kilograms of cannabis as compared with 15,590 kilograms in the prior quarter. The 86.2-per-cent increase in production output was primarily due to the additional production capacity added by Aurora Sky, River (Bradford) and Ridge (Markham) facilities. Extraction capacity increased from 20,400 kilograms to 26,400 kilograms in Q4 2019. Subsequent to the quarter-end, Aurora's annual extraction capacity further increased to 45,600 kilograms.

Q4 2019 selling, general and administrative expenses increased by 9 per cent to $72.9-million compared with the prior quarter. The change was primarily driven by an increase in fulfillment and shipping costs related to the growth in consumer cannabis sales, and continued investment in sales initiatives, distribution network, and partnerships to conduct research, develop products and drive brand awareness. Aurora will continue to invest in infrastructure and talent required for market share growth in the global medical and consumer cannabis markets, but will remain intensely focused doing this as efficiently as possible.

In Q4 2019, adjusted EBITDA loss improved 68 per cent to $11.7-million from $36.6-million in the prior quarter. Developing a profitable and robust global cannabis company is extremely important to Aurora. In fiscal 2019 Aurora was focused on excellence in execution, and the company's key performance indicators (KPI) show its success in this regard. Furthermore, Aurora has addressed previously identified production bottlenecks and continues to see strong sell-through of the company's products at the retail level. However, the Canadian consumer channel continues to experience challenges at the retail level in key markets, and resolution of this issue is beyond the company's control. Aurora is working closely with all its regulatory and channel partners to streamline distribution as the company continues to track toward positive adjusted EBITDA on a consolidated basis.

The company's operating facilities' current annualized run-rate production capacity is in excess of 150,000 kg per annum, based on planted rooms. As the industry leader in purpose-built cultivation, Aurora is focused on producing a consistent supply of high-quality, low-cost product to meet evolving market demand. Aurora is well positioned to respond to market conditions quickly with shorter lead times, increased harvest cycles and high plant yields.

Outlook

The global cannabis and hemp markets represent a significant opportunity for Aurora, and the company will continue to make the necessary investments today to build long-term value for shareholders. However, Aurora will take a balanced approach to these investments with a focus on operating a sustainable and profitable business.

The introduction of new product formats to the Canadian consumer market this fall represents a significant opportunity for the company. Aurora expects to have a robust product lineup ready to launch in December. Given the very early stage of development of the consumer market in Canada and international medical markets, management anticipates that quarter-to-quarter sales volumes and revenues may be volatile. The company expects adjusted EBITDA to continue to improve in the future due to expected revenue growth, improvements in gross margin and prudent SG&A growth.

The passing of the U.S. Farm Act presents new opportunities in the largest cannabis and hemp-derived CBD market globally, and as such Aurora is committed to establishing a substantial operating footprint in the U.S. As part of the U.S. market strategy, the company is considering its stakeholders, and how various state and federal regulations will affect its business prospects. A number of alternatives to grow Aurora's presence in the U.S. market are under evaluation, and the company is committed to only engage in activities which are permissible under both state and federal laws. Management believes there are currently market opportunities that are legal at both state and federal levels that can add operating cash flows, and be critical pillars of Aurora's strategy and long-term success.

Conference call

Aurora will host a conference call tomorrow, Sept. 12, 2019, to discuss these results. Mr. Booth, chief executive officer, Mr. Ibbott, chief financial officer, Cam Battley, chief corporate officer, and Michael Singer, executive chairman, will host the call starting at 9 a.m. ET. A question-and-answer session will follow management's presentation.

Date:  Thursday, Sept. 12, 2019

Time:  9 a.m. ET (7 a.m. MT)

Replay:  416-849-0833 or 855-859-2056 until midnight ET, Thursday, Sept. 19, 2019

Reference No.:  6084057

About Aurora Cannabis Inc.

Headquartered in Edmonton, Alta., Canada, with financed capacity in excess of 625,000 kg per annum, and sales and operations in 25 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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