Aurora Cannabis Provides Update on Australis Capital Public Listing

Aurora Cannabis Provides Update on Australis Capital Public Listing

The U.S. Cannabis Market

Up to now, the use of cannabis is legal in the District of Columbia 31 states and the territories of Guam and Puerto Rico. Nine states plus the District of Columbia have proceeded with consumer legalization. While momentum continues to build at the state level, cannabis remains a Schedule 1 controlled substance in the below the Controlled Substances Act. Consequently, the U.S. cannabis market is fragmented in nature and contains many high-quality operations and technology innovators with restricted access to capital. This has created a compelling opportunity for well capitalized Canadian companies to invest in U.S. assets, particularly considering expected market growth, with over 50% of the U.S. population now living in states with legal access.

Recent changes in U.S. federal positioning with respect to cannabis have positively impacted the perception of risk to invest in U.S. cannabis assets. This has further incentivized capital market participants to seek opportunities to finance U.S. based operations.

Australis synthesizes its historical relationship with strategic relationships and Aurora Cannabs years of expertise, and capital investment implementation to construct value from the cannabis value chain in the United States. Related real estate opportunities and targeting investments in cannabis, Australis is nicely positioned to opportunities that were attractively priced. With strong growth potential, Australis is identifying quality investment opportunities following an oversubscribed private placement, raising gross proceeds of $17 million. Australis has built a management team with significant U.S. capital markets, operating and regulatory compliance expertise governed by an industry best board of supervisors and profoundly rooted cannabis investment advisory committee.

Through investment, access to capital markets, Australis will leverage relationships with Aurora Cannabis and others to maximize deal flow and investments.

Management Commentary

“With Australis we’ve brought together an impressive management team and Board with huge capital markets and cannabis industry backgrounds to evaluate and pursue investments in the highly fragmented and opportunity-rich U.S. cannabis market,” said Terry Booth, CEO of Aurora. “Upon completion of the distribution, Australis’ independent opportunity team will leverage their combined experience while implementing the Aurora Standard to assessing and executing accretive opportunities that will drive long term shareholder value.”

“Our team has wasted no time evaluating a range of potential investment opportunities across the US cannabis industry and eager to initiate our investment strategy upon completion of the supply” said Scott Dowty, CEO of Australis. Generate shareholder value and we’re going into the market to capitalize on these transactions. I look forward to providing regular updates as we complete these investments and further define expansion vectors to what will be a disciplined, reflective and aggressive mandate.”

Update on Distribution of Australis Units to Aurora Shareholders

Following conclusion of Australis’ public record, Aurora and Australis anticipate the previously announced distribution of shares and warrants (the”Distribution”) will be finished and the Australis stocks and warrants will commence trading on the CSE on September 19, 2018 under the symbol”AUSA”. In accordance with the terms of the Distribution, eligible Aurora shareholder will be compensated one Unit of Australis for each 34 Aurora shares outstanding as at August 24, 2018 (the”Record Date). Each Unit consists of one common share and one share purchase warrant of Australis. Each warrant will entitle the holder thereof to acquire one share at an exercise price of $0.25 per Australis share, on or prior to 4:00 p.m. (Eastern Time) on the date that is 1 year after the Distribution.

In accordance with applicable securities laws Canadian shareholders can participate in the Distribution. Canadian beneficial shareholders or their agent representatives are required to confirm Canadian residency by no later than September 14, 2018 they will be deemed to be shareholders and will get the cash proceeds.  Shareholders who hold their shares in Aurora through other account or a brokerage are therefore urged to contact their agents to make certain that Canadian residency has been verified by their agents in the manner to be provided by CDS or DTCCapplicable.

Headquartered in Edmonton, Alberta, Canada with capacity that is funded in excess of 500,000 kg annually and sales and operations in 18 countries Aurora is one of cannabis companies that are leading and the world’s largest. Aurora is vertically integrated and horizontally diversified across each 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. 

Highly distinguished by its peers, Aurora has created a uniquely advanced, consistent and efficient manufacturing strategy, based on purpose-built centers that incorporate leading-edge technologies across all processes, characterized by extensive automation and customization, resulting in the massive scale production of high quality product at ultra-low expenses. Intended to be replicable and scalable these manufacturing facilities are designed to make cannabis of scale, with industry-leading yields high quality, and ultra-low per gram production expenses. Each of Aurora’s facilities is constructed to meet European Union (EU) GMP standards, and its first manufacturing facility and its wholly owned European medical cannabis distributor Pedanios have attained this level of certification.

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Released at Fri, 14 Sep 2018 14:50:55 +0000

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