NASDAQ | TSX: ACB
EDMONTON, AB, July 24,
2023 /CNW/ - Aurora Cannabis Inc. (the "Company" or
"Aurora") (NASDAQ: ACB) (TSX: ACB), the Canadian company opening
the world to cannabis, announced today that a wholly-owned
subsidiary of the Company has closed the sale of its Medicine Hat, Alberta facility (the "Aurora
Sun Facility") on July 21, 2023
to Bevo Farms Ltd. ("Bevo Farms"), a wholly-owned subsidiary
of Bevo Agtech Inc. ( "Bevo"). The sale of the Aurora Sun
Facility was completed via Bevo Farms' acquisition of one of
Aurora's wholly-owned subsidiaries (the "Aurora Sun
Transaction"). Aurora has a controlling interest in Bevo, one
of the largest suppliers of propagated vegetables and ornamental
plants in North America.
Up to $15 million could be payable
over time by Bevo Farms to Aurora in connection with the Aurora Sun
Transaction, based on Bevo Farms successfully achieving certain
financial milestones at the Aurora Sun Facility.
"I am pleased that this transaction will achieve the dual
objectives of improving Aurora's cash flow, while benefitting Bevo
as they proceed with the expansion of their business," said
Aurora's CEO Miguel Martin. "Bevo
has successfully repurposed the Aurora Sky facility in Edmonton, and we're excited to further support
their continued growth. Bevo's acquisition of the Aurora Sun
facility further demonstrates the close synergies between our
companies, and the value that our partnership creates for
shareholders."
Leo Benne, CEO of Bevo, added,
"Bevo's ability to deliver propagated plants directly from
Medicine Hat to the Alberta greenhouse industry and beyond
delivers a win for the Alberta
greenhouse industry, the City of Medicine
Hat and its residents, for Bevo, and for Aurora. We would
like to express our gratitude to the City
of Medicine Hat for their essential contributions to this
transaction. We look forward to further developing our partnerships
in Alberta in the years to
come."
Strategic Highlights
- Accelerates Bevo's plans to increase revenue and earnings,
which will be fully consolidated in Aurora's results due to
Aurora's controlling interest
- Builds on Bevo management's strong track record of profitable
growth and combined 85 years of agricultural experience to expand
their vegetable and floral propagation production footprint,
allowing the company to further extend its established distribution
reach
- Expected reduction of ~$2 million
annual carrying costs associated with maintaining the Aurora Sun
Facility as an idle asset
About Aurora
Aurora is opening the world to cannabis, serving both the
medical and consumer markets. Headquartered in Edmonton,
Alberta, Aurora is a pioneer in
global cannabis, dedicated to helping people improve their lives.
The Company's adult-use brand portfolio includes Aurora
Drift, San Rafael '71, Daily
Special, Whistler, Being and Greybeard, as well
as CBD brands, Reliva and KG7. Medical
cannabis brands include MedReleaf, CanniMed, Aurora and
Whistler Medical Marijuana Co, as well as international brands,
Pedanios, Bidiol and CraftPlant. Aurora also has a controlling
interest in Bevo Farms Ltd., North America's leading
supplier of propagated agricultural plants. Driven by science and
innovation, and with a focus on high-quality cannabis products,
Aurora's brands continue to break through as industry leaders in
the medical, performance, wellness and adult recreational markets
wherever they are launched. Learn more
at www.auroramj.com and follow us
on Twitter and LinkedIn. Aurora's common shares
trade on the NASDAQ and TSX under the symbol "ACB".
Aurora's common shares trade on the NASDAQ and TSX under the
symbol "ACB".
Forward Looking
Statements
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). 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. Forward-looking statements made in this news
release include statements regarding the Aurora Sun Transaction,
including, but not limited to: the expected acceleration of Bevo's
growth and plans to increase revenue and earnings as a result of
the Aurora Sun Transaction; expected improvements to the Company's
reported revenue and cash flow as a result of its ability to
consolidate Bevo's results; the potential for conditional
consideration to be paid to Aurora in connection with the Aurora
Sun Transaction; the expected reduction in Aurora's carrying costs
of maintaining the idle Aurora Sun Facility as a result of the
Aurora Sun Transaction; synergies between the Company and Bevo; and
the creation of shareholder value.
These forward-looking statements are only predictions. Forward
looking information or statements contained in this news release
have been developed based on assumptions management considers to be
reasonable. Material factors or assumptions involved in developing
forward-looking statements include, without limitation, publicly
available information from governmental sources as well as from
market research and industry analysis and on assumptions based on
data and knowledge of this industry which the Company believes to
be reasonable. Forward-looking statements are subject to a variety
of risks, uncertainties and other factors that management believes
to be relevant and reasonable in the circumstances could cause
actual events, results, level of activity, performance, prospects,
opportunities or achievements to differ materially from those
projected in the forward-looking statements. These risks include,
but are not limited to, the ability to retain key personnel, the
ability to continue investing in infrastructure to support growth,
the ability to obtain financing on acceptable terms, the continued
quality of our products, customer experience and retention, the
development of third party government and non-government consumer
sales channels, management's estimates of consumer demand
in Canada and in jurisdictions where the Company exports,
expectations of future results and expenses, the risk of successful
integration of acquired business and operations (with respect to
the Aurora Sun Transaction and the repurposing of the Aurora Sun
Facility and more generally with respect to future transactions),
management's estimation that SG&A will grow only in proportion
of revenue growth, the ability to expand and maintain distribution
capabilities, the impact of competition, the general impact of
financial market conditions, the yield from cannabis growing
operations, product demand, changes in prices of required
commodities, competition, and the possibility for changes in laws,
rules, and regulations in the industry, epidemics, pandemics or
other public health crises, including the current outbreak of
COVID-19, and other risks, uncertainties and factors set out under
the heading "Risk Factors" in the Company's annual information form
dated September 30, 2022 (the "AIF") and filed with
Canadian securities regulators available on the Company's issuer
profile on SEDAR at www.sedar.com and filed with and
available on the SEC's website at www.sec.gov. The Company
cautions that the list of risks, uncertainties and other factors
described in the AIF is not exhaustive and other factors could also
adversely affect its results. Readers are urged to consider the
risks, uncertainties and assumptions carefully in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such information. 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 securities law.
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SOURCE Aurora Cannabis Inc.