Mr. Terry Booth of Aurora reports
AURORA CANNABIS AND RADIENT TECHNOLOGIES SIGN MASTER SERVICES AGREEMENT
Further to the two companies' joint press release of Oct. 23, 2017, Aurora Cannabis Inc. and Radient Technologies Inc. have finalized a master services agreement, pursuant to which Radient has agreed to perform certain services for Aurora using its proprietary MAP technology, as well as other technologies, as an independent contractor in relation to the development, commercialization and supply of standardized cannabis extracts. The agreement has an initial term of five years, with an option for Aurora to renew the agreement for an additional five years.
Under the terms of the agreement, Radient will provide processing services to Aurora for the production of extracts from material supplied by the company, which may include both cannabis and hemp. The agreement initially covers services delivered in Canada, Australia and the European Union, including Germany where Aurora's wholly owned subsidiary Pedanios is the largest distributor of medical cannabis on the continent. Additionally, Aurora has the right to negotiate on an exclusive basis with Radient to expand the jurisdictions covered. Within the countries covered by the agreement, Radient shall deliver its services under preferential terms to Aurora.
Radient applied in December, 2016, to Health Canada to obtain licensed dealer status, and in February, 2017, for licensed producer status, and is progressing well through the processes. Upon receipt of either licence, Radient will be able to commence production of cannabis extracts from products supplied by Aurora or Aurora's partners.
"This agreement will enable us, in the very near future, to dramatically accelerate the production of high-margin cannabis derivatives under favourable terms," said Terry Booth, chief executive officer. "The market for non-smoked derivative cannabis products is growing at a remarkable pace, and through this agreement we have a cost-effective and scalable means to help meet this demand -- particularly once we begin harvests in the first half of 2018 at our 100,000-plus-kilogram-per-annum Aurora Sky production facility. We intend to continue our collaboration with Radient on other R&D projects that we expect will deliver significant value to both companies."
Denis Taschuk, chief executive officer of Radient, added: "This agreement brings together the industry's most technologically advanced cultivation facility, Aurora Sky, with the industry's most advanced extraction platform, Radient's MAP. With a shared commitment to world-leading quality assurance and the development of innovative products, we are excited about the benefits this partnership will bring to our respective stakeholders."
The master services agreement includes an investor rights agreement that provides Aurora with certain rights to participate in future offerings, providing Aurora with the option to expand its ownership in Radient up to 19.99 per cent. Aurora also has the right to appoint one director to the Radient board of directors.
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 Radient Technologies Inc.
Radient extracts natural compounds from a range of biological materials using microwave assisted processing, a patented technology platform which provides superior customer outcomes in terms of ingredient purity, yield and cost. From its 20,000-square-foot manufacturing plant in Edmonton, Alta., Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health and personal care markets.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.