VANCOUVER, Aug. 12, 2016 /Weed Wire/ — Aurora Cannabis (CSE: ACB) (OTCQB: ACBFF) (FSE: 21P), has entered into a definitive agreement to acquire CanvasRx Inc. from CanvasRx Holdings Inc. This will unite Aurora, one a Canada’s largest capacity and fastest-growing licensed producers of cannabis, with CanvasRx, Canada’s largest medical cannabis patient outreach service, which has 17 locations and more than 10,000 registered patients.
The acquisition will cost Aurora $37.5 million, the majority of which may be satisfied in cash or through the issuance of Aurora shares, at Aurora’s discretion, subject to performance milestones over a three-year period.
Aurora has also completed a brokered private placement through Canaccord Genuity as well as a non-brokered private placement, for total gross proceeds of $23 million. The 57.5 million subscription receipts, priced at $0.40, will be convertible into units, upon the satisfaction of certain escrow release conditions pertaining to the acquisition, with each unit consisting of one share and one-half a warrant, with each full warrant exercisable at $0.55 per share for two years.
Terry Booth, CEO, stated: “This financing and acquisition provide Aurora with the capital and the partner to continue to responsibly expand our position in the cannabis sector. With our industry-leading product quality and patient acquisition rate, our innovative use of technology and ultra-low cost of production, as well as our immediate plans for significant capacity expansion, Aurora is ideally placed to thrive in both the medical cannabis business and the eventual adult consumer cannabis market.”
Aurora, through its wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., operates a 55,200 square foot, expandable, state-of-the-art production facility in Mountain View County, Alberta, which is capable of producing over 8,000 kilograms of medical cannabis per year. Plans are well advanced for the construction of a second much larger facility in Alberta.
Gross revenue for July reached a new milestone of $1 million, with sales of dried cannabis showing strong month-over-month growth.
Investor relations is handled by Marc Lakmaaker at National Eqicom, who can be reached at 416-848-1397 or by email at firstname.lastname@example.org.
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