Aurora Cannabis Boosts Investment in Australia’s Cann Group– New Cannabis Ventures
AuroraCannabis Increases Ownership Interest in Cann Group Ltd.
- Cann to Use Funds for Accelerated Expansion
- Aurora’s Neil Belot Appointed to Cann Board of Directors
VANCOUVER and EDMONTON,Dec 4, 2017/ CNW/– AuroraCannabis Inc.(“Aurora”) (TSX: ACB) (OTCQB: ACBFF) (Frankfurt: 21 P; WKN: A1C4WM) today revealed that the Company is increasing its ownership stake in CannGroup Ltd(“Cann”) (ASX: CAN) from 19.9% to 22.9% by taking part in Cann’s newest, completely underwritten Placement of Shares (the “Placement”), priced at AUS$ 2.50 per share (around CA$ 2.41).
Cann’s Placement includes an Institutional Share Placement (“ISP”), in addition to a Share Purchase Plan (“SPP”) for eligible, signed up retail investors for overall earnings of as much as AUS$60 million (~ CA$58 million). Aurora will invest as much as AUS$26 million (~ CA$251 million) to increase its ownership involvement to 22.9%. The Placement includes 3 phases. The very first AUS$50 million ISP phase has actually been finished, while the last and 3rd phase is expected to finish on January 15,2018 A comprehensive description of the Placement’s conditions and terms, in addition to Aurora’s involvement therein, can be discovered in Cann’s news release provided today: http://bit.ly/2jHIa4A
Cann is Australia’s very first business certified to do research study on and cultivate marijuana for medical functions. The Company presently has 2 small centers, and has actually started dealing with a Phase III, 172,000 square foot growth. The funds raised will make it possible for Cann to speed up conclusion of this center and increase production to satisfy need, which is expected to proliferate.
Cann is the leading marijuana business in Australia, having actually been granted the very first license, and moneying the velocity of its growth prepares makes strong tactical sense. The worth of our preliminary $6.5 million financial investment, based upon Cann’s closing share cost since Friday 1 December 2017, has actually currently increased ten-fold to $65 million, and we have strong self-confidence in the Cann group to continue performing on their growth strategy and create additional investor worth at the same time.
TerryBooth, Aurora’s CEO
Additionally, the Company revealed that Aurora’s Chief Global Business Development Officer, Neil Belot, has actually been selected to Cann’s Board, reliable 22 November 2017, additional reinforcing the ties in between the 2 business beyond the Technical Services Agreement (“TSA”).
Mr Belot included, “This investment and the services, genetics and consultancy we will be delivering to Cann under our TSA, will help to significantly accelerate Cann’s development. Beyond the planned capacity expansion, we are also very excited about the scientific research conducted by Cann, its planned investments in product diversification, and its export potential. I look forward to being closely involved with the company, and actively support its development as member of the Board.”
CannGroup CEO Peter Crock, mentioned, “We can now move ahead with full certainty on our phase 3 expansion program, which includes the development of a 16,000m2 greenfield facility, incorporating some 9,600m2 of flowering production area. In addition, we can progress plans for the development of further production sites located on a strategic basis to help mitigate production-related risks. The export opportunity is now being evaluated by the relevant authorities and I expect an announcement in the near future. Leading into 2018 and beyond, the Company will continue to deliver on its strategic objectives and milestones, with an immediate focus on the phase 3 expansion program.”
Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a certified manufacturer of medical marijuana pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). Aurora runs a 55,200 square foot, modern production center in Mountain View County, Alberta, referred to as “Aurora Mountain”, a 2nd 40,000 square foot high-technology production center referred to as “Aurora Vie” in Pointe-Claire, Quebec on Montreal’s West Island, and is presently building an 800,000 square foot production center, referred to as “Aurora Sky”, at the Edmonton International Airport, in addition to is finishing a 4th center in Lachute, Quebec through its completely owned subsidiary Aurora Larssen Projects Ltd.
Aurora is purchased Radient, a leading extraction innovation business, in addition to remains in the procedure of finishing a financial investment in Edmonton- based Hempco Food and Fiber for an ownership stake of as much as 50.1%. Furthermore, Aurora is the foundation financier with a 22.9% stake in Cann Group Limited, the very first Australian business certified to perform research study on and cultivate medical marijuana. Aurora likewise owns Pedanios, a leading wholesale importer, exporter, and supplier of medical marijuana in the European Union, based inGermany The Company provides additional distinction through its acquisition of BC Northern LightsLtd and Urban Cultivator Inc., market leaders, respectively, in the production and sale of exclusive systems for the safe, high-yield and effective indoor growing of marijuana, and in modern indoor gardening home appliances for the growing of natural microgreens, veggies and herbs in house and expert kitchen areas. Aurora’s typical shares trade on the TSX under the sign “ACB”.
Cann is constructing a first-rate service concentrated on breeding, cultivating and making medical marijuana for sale and usage withinAustralia The Company has actually developed research study and growing centers in Melbourne and is making every effort to supply access to medical marijuana for Australian clients. Cann has actually performed cooperation arrangements that will allow it to develop a leading position in plant genes, reproducing, analysis, production and extraction strategies needed to assist in the supply of medical marijuana for a series of illness and medical conditions. It was provided with Australia’s very first medical marijuana research study licence in February 2017, in addition to Australia’s very first medical marijuana growing licence in March2017 Aurora Cannabis Inc– Canada’s second biggest noted medical marijuana business– is a foundation financier in Cann, with a 22.9% shareholding.
The most dependable, fact-based info on Aurora Cannabis discovered just on its InvestorDashboard
Before this marijuana stock news is here, it’s released to customers on 420Investor.