Canadian CANNAINVESTOR Magazine July / August 2017 - Page 111


Aurora Cannabis Inc. (TSX-V:ACB; OTCMKTS:ACBFF)

On May 26, 2017 Aurora Cannabis Inc. acquired Pedanios GmbH, a leading wholesale importer, exporter, and distributor of medical cannabis in the European Union.

Neil Belot, Aurora’s Chief Global Business Development Officer, stated in a recent Newswire press release, that:

“This is a transformational acquisition for Aurora, and a key step in our aggressive international expansion strategy…the transaction will ensure ongoing and increasing high quality product is available to fuel Pedanios’ rapid growth, while positioning Aurora and Pedanios to seize upon opportunities together within Germany and he EU’s emerging cannabis industry.”

Under the terms of the purchase agreement, dated May 18, 2017, Aurora will pay a consideration to holders of Class B securities of Pedanios approximately 3,421,756 common shares of Aurora, priced at $2.14 per share. In addition, a total consideration of approximately $13,565,000 in cash and common shares is payable to the holders of Class A common shares of Pedanios, which are held by the two founders/Managing Directors of Pedanios who will continue to run the company. The cash portion for the two founders being $3,020,000 and the share portion being 4,895,026 common shares of Aurora, priced at $2.14 per share, of which 17% will become free trading 4 months after closing, with the balance becoming unrestricted in equal installments on a quarterly basis over 27 months, commencing in February 2018. Total shares of Aurora being issued over 3 years represent less than 2% of total shares outstanding. Aurora's cash balance as of May 15, 2017 was $165,000,000. Values herein have been calculated based on an exchange rate of 1.51 Canadian dollars to every 1 Euros.

The full press release can be found here:

It is important to note that all of Pedanios’ existing supply contracts will remain in place, as Peace Naturals Project Inc., wholly owned subsidiary of Cronos Group Inc., also recently signed a distribution agreement with the company for German distribution.