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Creating a Global Industry Leader Positioned for Long-Term, Accelerated Growth
EDMONTON , July 25, 2018 /CNW/ – Aurora Cannabis Inc. (“Aurora”) (ACB.TO) (ACBFF) ( Frankfurt : 21P; WKN: A1C4WM) and MedReleaf Corp. (“MedReleaf”) (LEAF.TO) today announced the closing of the previously announced arrangement agreement (the “Arrangement Agreement”). Under the terms of the Arrangement Agreement, holders of MedReleaf common shares received 3.575 common shares of Aurora for each MedReleaf common share held (the “Exchange Ratio”).
Upon closing of the transaction, Aurora will submit applications with the Toronto Stock Exchange (the “TSX”) and the Ontario Securities Commission (the “OSC”) to delist MedReleaf’s existing common shares and for MedReleaf to cease to be a reporting issuer, respectively.
“The closing of this transaction brings together two vertically integrated, successful pioneers in the cannabis industry, creating a company with more than 1,200 employees and a rapidly growing domestic and international footprint,” said Terry Booth , CEO of Aurora. “The combination of MedReleaf and Aurora creates a well capitalized company positioned exceptionally well to generate further shareholder value, driven by the low-cost production of high-quality cannabis products. We will be applying our proven integration methodology, and will continue to execute to the Aurora Standard in capitalizing on the significant opportunities in the domestic and global cannabis industry.”
Mr. Booth added “Each of the strategic transactions Aurora has concluded have further advanced our envisioned business strategy of establishing a powerful, integrated and strongly differentiated cannabis company – positioned for continued rapid growth, and built to last. Our large-scale, high technology production facilities, strong science, R&D and product development capabilities, diversified product portfolio, and growing domestic and international distribution networks provide Aurora with significant competitive advantages in both the Canadian and global cannabis markets.”
Scale & Efficiency
Completion of the transaction creates a unified cannabis industry leader with a combined funded capacity of more than 570,000 kg of high-quality cannabis per year, to be delivered via nine facilities in Canada and two in Europe . Combining MedReleaf’s industry-leading cultivation yields and Aurora’s ultra low-cost Sky Class production facilities, which management believes will result in production costs well below $1 per gram, position the Company to deliver high-margin growth in all domestic and international market segments.
With the addition of MedReleaf’s three Ontario -based facilities and a combined Ontario workforce of more than 400 people, the transaction now makes Aurora one of the largest cannabis companies in Ontario , the country’s largest by population.
Science and R&D
Aurora and MedReleaf share a strong belief in the importance of science to drive innovations in the form of marketable IP and new value-added products, with the objective of creating a differentiated and broadly diversified high-margin operator. The combined science and R&D teams, including approximately 40 PhDs and MScs will be active in research projects throughout the global cannabis industry.