01:47:47 EDT Fri 10 Jul 2020
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Green Organic Dutchman Holdings Ltd (The)
Symbol TGOD
Shares Issued 28,000,000
Close 2018-05-02 C$ 3.89
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Aurora Cannabis invests $23.1M in Green Organic IPO

2018-05-02 09:04 ET - News Release

See News Release (C-ACB) Aurora Cannabis Inc

Mr. Terry Booth of Aurora reports


Aurora Cannabis Inc. has participated in the initial public offering of The Green Organic Dutchman Holdings Ltd., purchasing 17.5 per cent of the initial public offering issue, or 6.3 million units, priced at $3.65 per unit, for a total investment of $23.1-million. Each unit consists of one common share and one-half of one common share purchase warrant exercisable at $7 per common share.

The investment follows an earlier strategic investment completed in January, 2018, and, upon completion, Aurora will hold a total of 39.7 million common shares. The company furthermore owns 16.7 million share purchase warrants exercisable at $3 and will add a further 3.2 million share purchase warrants exercisable at $7 per share. This reflects an ownership interest of 17.6 per cent on an undiluted basis. Aurora has an option to increase its ownership to over 50 per cent in relation to The Green Organic Dutchman achieving certain operational and financial milestones.

The Green Organic Dutchman is currently completing a 14,000-kilogram-per-year facility in Ancaster as well as is constructing an 820,000-square-foot, 104,000-kilogram-per-year, ALPS-designed (Aurora Larssen Projects Inc.) high-technology cannabis facility in Valleyfield, Que. As announced in Aurora's press release of Jan. 16, 2018, the companies have also entered into a supply contract, providing Aurora with the right to purchase 20 per cent of The Green Organic Dutchman's annual production of organic cannabis from The Green Organic Dutchman's Ancaster and Valleyfield facilities. Consequently, Aurora anticipates being able to procure in excess of 23,000 kilograms of premium organic products per year once The Green Organic Dutchman's Valleyfield and Ancaster facilities are completed and at full capacity. If the company increases its ownership interest further, Aurora has the right to also increase the supply quantities sourced from The Green Organic Dutchman.

Management commentary

"With over 23,000 kilograms per annum of premium organic product secured and a significant appreciation of our original investment, our partial ownership of TGOD is both strategically and financially very beneficial for Aurora shareholders," said Terry Booth, chief executive officer of Aurora. "We believe the TGOD team is executing on a well-diversified strategy that we are proud to support and help derisk through the involvement of ALPS. The ALPS-designed TGOD facility will meet the Sky Class standard established by Aurora -- applied in the construction of the Aurora Sky, Aurora Nordic and Aurora Sun facilities -- designed to deliver large-scale production of consistently high product quality at ultralow production costs."

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 (known as Aurora Mountain) in Mountain View county, Alberta, and a second 40,000-square-foot, high-technology production facility (known as Aurora Vie) in Pointe-Claire, Que., on Montreal's West Island.

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