Companies Also Sign Investor Rights
Agreement
TSX: ACB
TSXV: RTI
VANCOUVER, Nov. 6, 2017 /CNW/ - Further to the two
companies' joint press release of October
23, 2017, Aurora Cannabis Inc. (the "Company" or "Aurora")
(TSX: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM)) and Radient
Technologies Inc. ("Radient") (TSXV: RTI) today announced the
companies have finalized a Master Services Agreement (the
"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 license, 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, CEO. "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+ kg 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, CEO 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%. Aurora also has the right
to appoint one director to the Radient Board of
Directors.
About Aurora
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, Quebec 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% of the issued
shares (12.9% on a fully-diluted basis) in leading extraction
technology company Radient Technologies Inc., 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%.
Furthermore, Aurora is the cornerstone investor with a 19.9% stake
in Cann Group Limited, the first Australian company licensed to
conduct research on and cultivate medical cannabis. Aurora also
owns Pedanios, a leading wholesale importer, exporter, and
distributor of medical cannabis in the European Union, based in
Germany. The Company offers
further differentiation through its acquisition of BC Northern
Lights Ltd. and Urban Cultivator Inc., industry leaders,
respectively, in the production and sale of proprietary systems for
the safe, efficient and high-yield indoor cultivation of cannabis,
and in state-of-the-art indoor gardening appliances for the
cultivation of organic microgreens, vegetables and herbs in home
and professional kitchens. Aurora's common shares trade on the TSX
under the symbol "ACB".
About Radient
Radient extracts natural compounds from a range of biological
materials using its proprietary MAPTM natural product
extraction technology platform which provides superior customer
outcomes in terms of ingredient purity, yield, and cost. From its
initial 20,000 square foot manufacturing plant in Edmonton, Alberta, Radient serves market
leaders in industries that include pharmaceutical, food, beverage,
natural health, personal care and biofuel markets. Visit
www.radientinc.com for more information.
On behalf of the Board of Directors,
AURORA CANNABIS INC.
Terry Booth, CEO
RADIENT TECHNOLOGIES INC.
Denis Taschuk,
CEO
Information set forth in this news release contains
forward-looking information and statements that are based on
assumptions as of the date of this news release. These statements
reflect management's current estimates, beliefs, intentions and
expectations. They are not guarantees of future performance. The
terms and phrases "goal", "commitment", "guidance", "expects",
"would", "will", "continuing", "drive", "believes", "indicate",
"look forward", "grow", "outlook", "forecasts", "intend", and
similar terms and phrases are intended to identify these
forward-looking statements. The Corporations caution that all
forward looking information and statements are inherently uncertain
and that actual performance may be affected by a number of material
factors, many of which are beyond the Corporations' control. Such
factors include, among other things: risks and uncertainties
relating to the Corporations' ability to finalize the terms of the
proposed agreement. Accordingly, actual and future events,
conditions and results may differ materially from the estimates,
beliefs, intentions and expectations expressed or implied in the
forward looking information. Except as required under applicable
securities legislation, the Corporations undertake no obligation to
publicly update or revise forward-looking information.
Neither TSX nor TSX Venture Exchange nor their Regulation
Services Providers (as that term is defined in the policies of the
respective Exchanges) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Aurora Cannabis Inc.