Canadian medical marijuana producer Aurora Cannabis Inc (CSE: ACB) has agreed to receive a draw-down equity facility of up to $5 million from Alumina Partners, a U.S. private equity firm. Founded in 2013, Aurora operates a 55,200 square-foot production facility in Mountain View County, Alberta. It said the proceeds of Alumnia’s investment will provide the company with the financial flexibility and working capital required to pursue its business strategy.
Aurora Enters Into $5 Million Equity Facility With New York Private Equity Firm Alumina Partners LLC
VANCOUVER, June 6, 2016 /CNW/ – Aurora Cannabis Inc. – (the “Company” or “Aurora”) (CSE – “ACB”) (OTCQB – “ACBFF”) (Frankfurt: 21P; WKN: A1C4WM) is pleased to announce that on June 3, 2016, the Company entered into a non-binding agreement for a draw-down equity facility of up to $5,000,0000. The agreement provides for equity private placement offerings (the “Offerings”), to be conducted between Aurora and Alumina Partners LLC, a New York-based private equity firm, in draw down amounts at the sole discretion of the Company, of up to $500,000. Pursuant to the terms of the Offerings, Alumina Partners will commit to purchase up to $5,000,0000 of units of the Company (the “Units”), consisting of one common share (the “Shares”) and one half of one common share purchase warrant (the “Warrants”), at discounts ranging from 15% to 25% of the market price of the Shares, with each Offering occurring exclusively at the option of the Company, throughout the 18 month term of the agreement. The exercise price of the Warrants will be at a 25% premium over the market price of the Shares. Closing is anticipated later this month.
The purpose of the Offerings is to provide the Company with financial flexibility and unilateral control over the financing of its working capital requirements, and provide access to capital as deemed necessary by the Board of Directors of the Company.
“We are very pleased that Alumina Partners have selected Aurora to represent their first foray into the rapidly maturing cannabis sector,” said Terry Booth, CEO. “This agreement provides us with additional financial flexibility under a single working capital facility that will serve to de-risk the Company as we transition towards profitable operations, and prepare to execute on the next phases of our business strategy.”
“We are bearing witness to a historic development, with the rapid emergence of a well capitalized cannabis industry in North America – and particularly in Canada, with its established national medical cannabis system and legislative path to legalize consumer use,” said Adi Nahmani, Managing Member of Alumina Partners, LLC. “We are very pleased to enter into this investment agreement with Aurora. Their combination of a fast-growing, government approved patient base and an experienced, newly-expanded management team positions them extremely well to ride this economic wave.”
About Aurora Cannabis Inc.
Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical marijuana pursuant to the Marihuana for Medical Purposes Regulations and operates a 55,200 square foot, expandable, state-of-the-art production facility in Mountain View County, Alberta, Canada. Aurora trades on the Canadian Securities Exchange under the symbol “ACB”.
On behalf of the Board of Directors, AURORA CANNABIS INC.
Terry Booth, CEO
This news release contains statements that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. Such forward-looking statements are estimates reflecting the Company’s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. Such factors include but are not limited to the risks set out in the Company’s management’s discussion and analysis filed on SEDAR. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
The CSE or other regulatory authority has not reviewed, approved or disapproved the contents of this press release.
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For further information: Cam Battley, Senior VP, Communications and Medical Affairs, firstname.lastname@example.org, +1.905.864.5525, www.auroramj.com; Marc Lakmaaker, NATIONAL Equicom, email@example.com, +1.416.848.1397
Photo courtesy of Reuters/Anthony Bolante