Aurora Announces Closing of $2 Million Unsecured Debt Financings and Operations Update
June 16, 2015 (Source: Marketwired) — Aurora Cannabis Inc. (CSE:ACB)(FRANKFURT:21P)(WKN:A1C4WM)(OTC PINK:PSNTF) (“Aurora” or the “Company”) is pleased to announce the closing of its unsecured debt financings and provide an update of its operations.
Unsecured Debt Financings:
Aurora received an aggregate of $2,000,000 to fund its working capital requirements from Terry Booth, CEO, and companies controlled by Terry Booth and Steve Dobler, President of the Company.
The loans are unsecured, bear no interest until the Company reports a cash flow positive quarter after which interest will be charged at 4% per annum, and mature on the later of: (i) the Company reporting two consecutive profitable quarters; and (ii) August 1, 2016.
Terry Booth commented, “This loan allows for a smooth entry into the final phase of our licensing process. It also gives Aurora the ability to negotiate with patience the numerous debt finance options the Company has been presented with. Traditional lending is our preference which normally takes longer but provides significant advantages to non-traditional debt finance options.”
As Messrs. Booth and Dobler are insiders and controlling shareholders of the Company, the loans constitute a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on the exemptions from the formal valuation and minority shareholder approval requirements with respect to the loans pursuant to sections 5.5(b) and 5.7(1)(f), respectively, of MI 61-101 on the basis that the Company is not listed on a senior stock exchange and that the loans were secured on reasonable commercial terms that are not less advantageous to the Company than if the loans were obtained from a person dealing at arm’s length with the Company. In addition, the loans are not convertible, directly or indirectly, into equity or voting securities of the Company or otherwise participating in nature.
The Company appointed Ms. Penny Sterling as Aurora’s Quality Assurance Director. Ms. Sterling holds a diploma in Chemical Technology and has over 20 years of Quality Management and regulatory experience in the pharmaceutical industry including Banner Pharmacaps (Canada) Ltd. and Olds SoftGels Inc. Her strong regulatory background and knowledge of Health Canada, Canadian Food Inspection Agency (CFIA), and Food and Drugs Act (FDA) standards will ensure that Aurora adheres to the highest standards of safety and quality assurance to provide the highest quality medical cannabis products to patients.
Aurora is currently growing 12 strains of cannabis and the first crop is well into flower. The harvest of 7 different strains will commence on June 17th. Once all strains have been harvested, a vast array of lab analysis will be performed in order to allow Aurora to choose the widest range of THC/CBD and terpenoid profiles possible to provide patients with cannabis representing the greatest possible flexibility for treating their medical conditions.
In anticipation of the recent ruling made by the Supreme Court on the R.v.Smith extracts case, Aurora made the purchase of a state-of-the-art, pharmaceutical grade SFE (supercritical fluid extraction) unit. This best-in-class instrumentation is currently amongst the highest capacity devices on the market, allowing for safe, characterizable extractions suitable for medical-grade vaporization devices and/or health care products. The SFE unit comes as a turnkey solution including proven extraction methodologies drawn from years of experience with high-end U.S. producers of high-grade cannabis oil derivatives.
Australis Holdings LLP (“AHL”), the Company’s 50% owned subsidiary, has commenced engineering and design on the Bellingham project. AHL is also in discussions with an existing 502 license holder for the leasing of the existing structure on the Bellingham site.
About Aurora Cannabis Inc.
Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical marijuana pursuant to the Marihuana for Medical Purposes Regulations and operates a 55,200 square foot expandable state-of-the-art production facility in Alberta, Canada. Aurora’s wholly-owned subsidiary, Australis Capital Inc., seeks to be an active participant in the U.S. Cannabis market. Aurora is trading on the Canadian Securities Exchange under the trading symbol “ACB”.
On behalf of the Board of Directors,
AURORA CANNABIS INC.
Terry Booth, CEO
The CSE, securities commission or other regulatory authority has not reviewed, approved or disapproved the contents of this press release. We seek Safe Harbour.