Mr. Terry Booth reports

AURORA CANNABIS PROVIDES CORPORATE UPDATE AND CONFIRMS CANNABIS 2.0 ROLL OUT

Aurora Cannabis Inc. has provided an update on the readiness of its operations with the introduction of new product formats, recent industry recognitions and updates to existing operations. As a global leader in cannabis revenues, cannabis production, research, innovation and international market development, the company intends to provide regular updates to its stakeholders in an effort to demonstrate continued transparency and disclosure.

• Initial cannabis 2.0 shipments released to 10 provincial regulators; new products have also been made available for order countrywide by Aurora's registered medical patients;
• Provides update on capital expenditure plan aligned to long-term market growth;
• Network of strategic partners continue to demonstrate value and strong execution.

"We have focused our collective efforts to be ready for the successful launch of cannabis 2.0 as Canada takes the next step in the legalization of newly allowed product forms. We are ready and have launched a diversified portfolio of new product formats and are excited for Canadians to have access to high-quality, safe alternative cannabis products such as edibles, vape pens and other derivatives," said Terry Booth, chief executive officer of Aurora. "We have prudently deployed capital and we believe that we're ready with the appropriate combination of technology, scale and consumer insights to have the right products on store shelves in a timely fashion. This was not an easy task and I would like to thank the entire Aurora team for their collective efforts in getting 2.0 across the goal line in time for our provincial regulators."

Recent corporate initiatives

Aurora has taken steps to pro-actively rationalize capital expenditures, reduce near-term debt and bolster liquidity in an effort to position the company for the long-term success. The previously announced deferral of construction and commissioning activities is expected to conserve approximately $200-million of cash in the near term. Aurora believes that its existing assets are sufficient to meet current demand at a low cost per gram. The company expects to have the flexibility to ramp up projects as global demand dictates.

In late November, the company also retired $227-million of the $230-million 5 per cent unsecured convertible debentures that were due in March, 2020, with the issuance of shares and thereby preserving cash. Aurora continues to evaluate multiple sources of capital and currently has access to undrawn capacity under a $360-million credit facility with a syndicate of banks, in addition to its $400-million (U.S.) at-the-market (ATM) equity distribution program.

Cannabis 2.0 product launch

The company has commenced shipments of initial orders received to 10 of Canada's provincial regulators of cannabis 2.0 products following Dec. 17, 2019, however most Canadian consumers will likely not see these products on retail store shelves until early January, 2020, due to varied retail operations across the country. Patients can now immediately access a variety of the new product formats.

Initially the company is providing a variety of cannabidiol and tetrahydrocannabinol vape and edible products, such as gummies, chocolates, baked goods and mints. These new cannabis products are being produced at Aurora Sky in Edmonton, Alta., Aurora River in Bradford, Ont., and Aurora Vie in Pointe-Claire, Que. These centres have been outfitted to provide centralized production, packaging, logistics and distribution capabilities. The company has prioritized its resources to prepare for a successful initial launch and has built inventories to support a continuing replenishment strategy to help ensure consumers across Canada have access to a diverse portfolio of high-quality derivative products.

The company encourages Canadian consumers to review Aurora's ready for edibles campaign, which aims to educate consumers about the responsible consumption of cannabis edibles. The campaign can be seen at cannabis retail outlets across Canada. For more information, visit the ready for edibles website.

Provincial regulatory updates

Aurora commends Premier Ford, Minister Downey and the government of Ontario for committing to improving the province of Ontario's cannabis retail environment through the open allocation of retail cannabis licensing. The new policy is expected to see the removal of the cap on the number of private cannabis stores in the province as well as thoughtful prequalification requirements.

"We applaud this positive step by the Province of Ontario to provide a retail environment which is conducive to a successful system that provides Canadians with more safe, regulated cannabis products," said Mr. Booth.

Recent executive appointment

Aurora is pleased to announce that Rick Savone has joined the company as senior vice-president of global government relations. In this new role, Mr. Savone will oversee Aurora's relationships with governments around the world, helping them to create regulations that will allow greater access to medical cannabis products for patients. Over the course of his career Mr. Savone has developed deep government relations experience, most recently as the director general for Global Affairs Canada. Prior to that, Mr. Savone was Canada's ambassador to Brazil and has held various other senior level positions with the department including as consul general in Shanghai.

International market developments

Denmark

Aurora has received the very first approval from the Danish Medicines Agency for the import of the company's Sedamen soft gel capsules into Denmark. Aurora is currently working to obtain an export permit from Health Canada and expects to complete the first shipment from its Aurora Ridge facility in Markham, Ont., in the first calendar quarter of 2020.

Ireland

On Dec. 2, 2019, Aurora announced that one of the company's oil products has now been approved for use under Ireland's new medical cannabis access program (MCAP). Aurora's high CBD oil drops received approval from the Irish authorities and have now been added to a regulatory schedule by the Irish Minister of Health enabling importation, prescribing and supply under the schedule and is to date, one of only two products to gain such authorization.

Flagship retail store update

Aurora's experiential flagship store opens in the West Edmonton Mall

The company's flagship retail store official opened on Nov. 27, 2019, in North America's largest shopping mall. At approximately 11,000 square feet, the location in the West Edmonton Mall combines a retail cannabis store that showcases Aurora brands and an immersive experiential space for cannabis education, events and community engagement. With more than 30 million visitors to the West Edmonton Mall each year, Aurora's flagship is already seeing a combined average of 700 visitors per day. On average, 94 per cent of visitors to the cannabis and accessories store make a purchase. Thus far, the top selling cannabis products have been Aurora's Hybrid and THC prerolls, Whistlers organic products and the company's popular cultivar, LA Confidential.

Facility status updates

Whistler Pemberton facility construction complete

Aurora's wholly owned subsidiary, Whistler Medical Marijuana Corp., recently completed construction of its 62,000-square-foot production facility in Pemberton, B.C. Construction of the Pemberton facility commenced April, 2018, and is purpose built to European union good manufacturing practices (EU GMP) standards. The 15-room Pemberton facility is Whistler's largest and has a designed capacity of 4,500 kilograms of premium, organic certified, cannabis per year. The new Pemberton facility also incorporates a public lounge to educate visitors to the region about Whistler and its history of pioneering organic certified cannabis cultivation.

Whistler product is in strong demand from both medical and consumer markets, and its craft production commands a premium brand position and pricing. The additional capacity of the Pemberton facility is expected to enable Aurora to increase the availability of Whistlers organic certified dried cannabis, hand-rolled joints and cannabis. Whistler expects to introduce a new line of organic certified hashish and live rosin cannabis extracts soon.

Aurora Nordic 1 receives additional licensing

Aurora Nordic 1, the company's 100,000-square-foot facility located in Odense, Denmark, with a production capacity of 8,000 kilograms per year of medical cannabis, recently received a processing and drying licence. Aurora has also completed the requisite filings to obtain EU GMP certification of the facility, and expects to receive approval in the first calendar quarter of 2020, which will allow for sale to patients across Europe.

New extraction technology implemented at Aurora River

Aurora River, the company's 210,000-square-foot production facility located in Bradford, Ont., recently completed installation of new, proprietary extraction equipment to increase the company's resin extract production capacity for soon-to-be-released premium cannabis derivative products. The highly advanced, process patented equipment was designed in house and uses CO2 extraction to process up to 20 kg of plant material per run, and is capable of performing two runs per day. Aurora River is already using the new extraction technology for the production of edibles and Aurora's new line of vapes with high-quality cannabis resin from the company's high THC and high CBD cultivars.

Aurora Eau receives Health Canada processing licence

Aurora Eau located in Lachute, Que., recently received a Health Canada processing licence. In addition to its existing Health Canada licence, which authorized cannabis cultivation and sales, the new licence allows the facility to process, package and sell dried and fresh cannabis to authorized Canadian retailers. Designed for the cultivation of niche and exotic cannabis varieties and home to Aurora's Eastern Canada outdoor grow operation, Aurora Eau is a 48,000-square-foot facility with a production capacity of 4,500 kg/year.

New automated packaging line installed at Aurora Vie

Aurora Vie located in Pointe-Claire, Que., recently commissioned and installed a new automated packaging line, reducing the time it takes to package solid dose cannabis products. The state-of-the-art equipment can package, seal and cap up to 100 bottles per minute and has been used for soft gels at the facility since Oct. 31, 2019. The new packaging line is used for cannabis-infused mints, which are made at Aurora Vie and are expected to enter the consumer and medical cannabis markets after Dec. 17, 2019.

Dehulling and decorticator arrive at Hempco's Nisku facility

Hempco's new, state-of-the-art, 56,000-square-foot processing facility, which is capable of processing 2.9 million kilograms per year hemp, is nearing completion. The facility, located in Nisku, Alta., recently commissioned its new dehulling and decorticating equipment. Upon completion in the first calendar quarter of 2020, the new equipment will be capable of dehulling 450 kg/hour of hemp hearts and decorticating 1.5 tonnes per hour of hemp fibre.

Industry recognition

Aurora wins top prizes at Canadian cannabis awards

Aurora took home four top prizes at Lift & Co.'s Canadian cannabis awards on Nov. 8, 2019. Awards received at the event included top sativa flower for San Rafael '71 Tangerine Dream, top indica flower for San Rafael '71 Pink Kush, top cannabis spray for Aurora sativa oral spray and top balanced bottled oil for MedReleaf Midnight Oil. Other Aurora family products and companies were also finalists in the top sativa flower, top high CBD bottled oil, top cannabis capsules, top home growing box and top testing lab categories.

Strategic partner developments

Aurora has a broad partnership portfolio of cannabis and cannabis-adjacent businesses which all provide valuable strategic benefits to Aurora. The benefits include retail footprint and customer insights, product technology/intellectual property, and operational or cost advantages. The company continuously evaluates the strategic fit of these investments and may choose to monetize investments which are no longer core to the strategic plan.

Alcanna Inc.

• Alcanna continues to build out its cannabis retail store network across Canada with 30 Nova Cannabis locations in Alberta.
• Nova Cannabis's Queen Street West location in Toronto continues to average $400,000 to $500,000 per week in sales -- of which Aurora and MedReleaf are the highest selling brands by a wide margin.
• Alcanna is targeting the maximum of 10 stores in Ontario by Aug. 31, 2020, with 10 to 15 more by year-end and to reach the 30-store limit before August, 2021.

Capcium Inc.

• Capcium is currently in the final stages of construction at its new state-of-the-art production facility with a capacity for up to 10 soft gel encapsulation lines capable of producing approximately 2.5 billion soft gel capsules annually.
• Capcium recently received its cannabis research and development licence for the new facility and will be starting its cannabis R&D laboratories in Q1 2020. Capcium is expecting to obtain its standard processor licence by end of Q1 2020.
• Capcium's soft gel capsules manufactured for Aurora were the first finished soft gel products of a Canadian LP to be approved for sale in an EU country.

Choom Holdings Inc.

• Currently, Choom has 14 stores open and operating and is targeting 20 stores open across Canada by the first quarter of 2020 with two additional cannabis development permits in highly coveted areas of the Greater Vancouver region.
• On Dec. 1, 2019, Choom expanded its executive team with the appointment of Corey Gillon as the company's new chief executive officer, who was also appointed to the board of directors. Mr. Gillon's executive leadership roles were established at Walmart and Aritzia where the corporate strategies he implemented were customer-focused and ensured operational retail development.
• With the recent announcement made by the Alcohol and Gaming Commission of Ontario to move to open market for private cannabis retail, Choom had commenced the process of exercising the option to purchase its branded flagship retail store located in Niagara Falls. With these regulatory changes, Choom expects to expand its footprint in Ontario starting the first quarter of 2020.

CTT Pharmaceutical Holdings Inc.

• On Oct. 6, 2019, Aurora commenced sales of its dissolve strips to the Canadian medical market. Dissolve strips, a novel non-smokable, sublingual cannabinoid delivery technology, were developed in collaboration between CTT and Aurora, which hold a 9-per-cent ownership interest.
• Based on the successful market introduction, with the dissolve strips selling out in short order, Aurora and CTT are in the process of developing additional SKUs, including CBD infused strips and THC:CBD balanced strips for both the medical and the consumer markets.

EnWave Corp.

• EnWave has signed a total of 14 royalty-bearing commercial licences for REV technology in fiscal 2019.
• On Dec. 11, 2019, EnWave announced that in its fiscal 2019 it generated $42.8-million in revenue, up 88 per cent from $22.8-million in 2018.
• EnWave has sold its innovative REV machines for the drying of cannabis to Swiss, Australian and New Zealand companies.

High Tide Inc.

• High Tide expanded its retail cannabis network from 25 branded stores at the end of September to 30 operating locations today, including 27 Canna Cabana stores and three KushBar stores located across Alberta, Ontario and Saskatchewan.
• Acquired the remaining 49.9 per cent of its KushBar joint venture, including three operating retail cannabis stores and a fourth location currently under construction, all located in Alberta.

Radient Technologies Inc.

• Radient is currently extracting and processing a large inventory of cannabis biomass for Aurora at its Edmonton I cannabis processing facility (designed for 56,000 kg/year throughput capacity). Recovery of cannabinoids is consistently above 90 per cent and as much as 99 per cent. Products have shown high levels of quality and demonstrated extended shelf life, with negligible cannabinoid degradation over multiple months.
• Radient's Edmonton II hemp processing facility, designed to process 420,000 kg/year of hemp, is on track for completion at the end of calendar 2019. Additional commissioning and validation work are expected to commence in early calendar 2020, after licensing is granted by Health Canada. Radient's Edmonton III facility, with construction well under way, is expected to begin operations in the second half of calendar 2020, scaling up to its intended full capacity of 280,000 kg/year of cannabis and 2.8 million kg/year of hemp thereafter.
• Radient's Germany facility will be commissioned in two phases. The first phase, a leased production facility that is being built to suit cannabis extraction, is now under way. Phase one capacity and throughput will be 200 kg/day, processing either hemp or cannabis biomass. The second phase will be the expansion of capacity on a site adjacent to the facility noted in the aforementioned first phase, scaling up to a throughput capacity of 280,000 kg/year of cannabis, and 2.8 million kg/year of hemp.

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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