Aurora Cannabis increases stake in Hempco to 35%

Twitter icon

Aurora Cannabis Inc. ("Aurora") (TSX: ACB) (OTCQB: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) and Hempco Food and Fiber Inc ("Hempco") (TSX-V: HEMP) announced today that Aurora has exercised 10,558,676 warrants to purchase common shares of Hempco for total proceeds of $4.3 million to Hempco.

Consequent the warrant exercise, Aurora now owns 21,117,352 Hempco common shares, reflecting an ownership interest of approximately 35%.

"With this further investment by Aurora we are now very well capitalized to accelerate our various strategic initiatives to drive growth at Hempco," said Diane Jang, CEO of Hempco.

"Since taking the helm at Hempco, we have made a number of tactical and strategic moves that position the company well to take advantage of a number of opportunities in the health lifestyle food supplements market, as well as for the pet and equine markets. Additionally, with the positive vote on the second reading of Bill C-45 in the Senate, implementation of the new Cannabis Act is that much closer, which would position us very well for whole-plant utilization and further acceleration of our business plan. These funds, and the presence of a large, stable shareholder, puts Hempco in a strong position to pursue a multitude of opportunities and create further shareholder value."

Terry Booth, CEO of Aurora, added, "This additional investment in Hempco was anticipated from Day 1 of our strategic partnership. We are pleased with the work done by Diane and her team, and look forward to supporting Hempco's growth initiatives and capitalizing on the multiple opportunities this partnership creates for us. In addition to the warrants exercised, we intend exercising our option to buy founder shares, and take our position to north of 50%.

About Aurora

Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada's Access to Cannabis for Medical Purposes Regulations ("ACMPR"). The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, known as "Aurora Mountain", and a second 40,000 square foot high-technology production facility known as "Aurora Vie" in Pointe-Claire, Quebec on Montreal's West Island. In January 2018, Aurora's 800,000 square foot flagship cultivation facility, Aurora Sky, located at the Edmonton International Airport, was licensed. Once at full capacity, Aurora Sky is expected to produce over 100,000 kg per annum of cannabis.  Aurora is completing a facility in Lachute, Quebec utilizing its wholly owned subsidiary Aurora Larssen Projects Inc.

Aurora is close to completion of the acquisition of all the outstanding shares of CanniMed Therapeutics Inc, Canada's most experienced licensed producer of medical cannabis, adding over 20,000 kg per annum in funded capacity, as well as Canada's strongest medical cannabis brand.

Click here to view full article.

e-mail icon Facebook icon Twitter icon LinkedIn icon Reddit icon
Rate this article: 
Regional Marijuana News: