The joint lead manager and underwriters to the offer are Canaccord Genuity (Australia) Limited and PAC Partners Pty Ltd. Under the terms of the subscription agreement Aurora has committed to subscribe for 21,562,314 'new fully paid ordinary shares' in Cann Group at the IPO offer price per share of AUD $0.30. Aurora's total investment of AUD $6.5M (approximately CAD $6.6M) represents 47% of the AUD $13.5M offer. Following completion of the IPO expected in May, 2017, Aurora will hold 19.9% of the fully paid ordinary shares in Cann Group.
The Commonwealth government in Australia amended its Narcotic Drugs Bill in February 2016 to legislate medical cannabis to provide an Australian supply and to encourage pathways to clinical trials. Cann Group seeks to become a leading producer and supplier of medicinal cannabis products to Australian patients. Cann Group is the first Australian company to be granted the necessary licences to cultivate medical cannabis for both research and human use, through its wholly owned subsidiary Cannoperations Pty Ltd.
Aurora's Chief Global Business Development Officer, Neil Belot said, "Cann Group's first mover advantage in Australia is a testament to their team's experience and ability to execute their business strategy. This historic IPO is an excellent opportunity for Aurora to establish a meaningful relationship with Australia's first licensed medical cannabis producer under the new legislation."
"We believe that there is potential for Australia to become a leading market for medical cannabis research, innovation, investment and commercialization, given the country's regulatory framework, its entrepreneurial business environment, and the high quality of local talent," said Terry Booth, CEO of Aurora. "The team behind Cann has a wealth of experience, and we are committed to supporting them fully, as Australia's cannabis industry develops."
"We are very excited about Cann Group's market opportunity, we're confident in our business strategy, and we look forward to welcoming Aurora to Australia," said Peter Crock, CEO of Cann Group. "As the first company in Australia to be granted medical cannabis research and cultivation licences, we believe we have a strong future ahead of us. The enthusiasm, support and detailed insights we have received from Aurora have been incredibly helpful, and strengthen our proposition. We are poised to build on that foundation and work collaboratively to be leaders in the development of the medical cannabis industry in Australia."
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, and is currently constructing a second 800,000 square foot production facility, known as "Aurora Sky", at the Edmonton International Airport. The Aurora Sky project has secured advanced technology from the most renowned design and construction suppliers in the Netherlands. Aurora's common shares trade on the TSX-V under the symbol "ACB".
On behalf of the Board of Directors, AURORA CANNABIS INC.
Terry Booth CEO
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. There is no assurance that the Proposal will be completed on the terms or within the timeframe contemplated in this news release or at all. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
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