Aurora Cannabis Announces Financial Results for the Second Quarter of Fiscal 2019 83% Sequential Net Revenue Growth to $54.2 Million TSX: ACB | NYSE

Aurora Cannabis Announces

Financial Results for the Second Quarter of Fiscal 2019

83% Sequential Net Revenue

Growth to $54.2 Million

TSX: ACB | NYSE: ACB

EDMONTON, Feb. 11, 2019 /CNW/ - Aurora

Cannabis Inc. (the "Company" or "Aurora") (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM),

announced today its financial and operational results for the second quarter ended December 31st, 2018.

Q2 2019 Financial and Operations Highlights

Q2 2019 and Subsequent Highlights

Net revenue of $54.2 million, up 83% sequentially, and

up 363% compared to the same period in 2018, driven by Aurora's strong performance in the launch of the Canadian consumer market

with sales of $21.6 million, and the Company's continued strength in the Canadian and international medical markets with sales

of $26.0 million, up 8% in revenue and 23% in volume sold.

Average selling prices were impacted by the introduction

of excise taxes across all Canadian sales channels on October 17, 2018, as well as lower wholesale pricing realized in the Canadian

consumer market. Going forward, Aurora intends to continue prioritizing medical patients in Canada and globally where margins continue

to exceed those achieved on the wholesale consumer market.

Q2 2019 kilograms produced and kilograms sold of 7,822

and 6,999 were up 57% and 162%, respectively, driven by continued and significant scale-up of Aurora's cultivation operations and

strong demand across all the Company's markets.

Gross margin on cannabis sales of 54% was temporarily down

from 70% in the prior quarter. The decrease was primarily due to a lower average selling price per gram of dried cannabis,

the impact of excise taxes on medical cannabis net revenues, and a temporarily lower proportion of cannabis oil sales in the Company's

sales mix ratio. Also impacting gross margin were increased packaging requirements under the Cannabis Act and one-time

ramp up and optimization costs as our Sky facility was brought up to full production. The Company anticipates that the launch of

new derivative product lines, once allowed under Health Canada regulations, will contribute to improving margins.

The company is performing well in the Canadian consumer

market, recording $21.6 million of revenue in Q2 2019. Based on available data released by Health Canada for the Q2 2019 period,

Aurora accounted for approximately 20% of all consumer sales across the country.

Cash cost to produce per gram of dried cannabis sold temporarily

increased from $1.45 in the previous quarter to $1.92 in Q2 2019. This change was primarily due to ramp-up and optimization costs

as the Company scaled-up Aurora Sky to full production. One-time additional costs incurred related to the launch of the Canadian

consumer market, as the Company waited for its Sky sales licence (received October 17, 2018), also contributed to the increase.

Aurora Sky is now fully complete and commissioned, and

is expected to reach its full production capacity, based on Health Canada approved planted rooms, shortly. Recent harvests completed

to date at the facility have exceeded targeted yields, reflecting that the facility's commissioning has been successful, all environmental

and nutrition systems, and operating protocols are dialed in, and technology components are functioning well.

Q2 2019 SG&A remained steady compared to the prior

quarter as lower sales and marketing costs were offset by one-time public company and acquisition costs, as well as the absorption

of a full quarter of SG&A costs from recently acquired companies, including MedReleaf.

Non-cash expenses including the December 31, 2018 mark-to-market

adjustments of approximately $190 million primarily on the Company's derivative investments contributed significantly to a net

loss of $240 million.

In January 2019, Aurora completed a US$345 million convertible note

offering, with the proceeds earmarked predominantly to drive the Company's continued high pace of growth in Canada and internationally.

The most significant driver of Aurora's revenue

growth over the next twelve to eighteen months is the Company's scale-up of high-quality production available for sale to the Canadian

consumer market and the Canadian and international medical markets. Aurora is now operating at an annualized production rate of

approximately 120,000 kgs, based on Health Canada approved planted rooms, and expects to reach in excess of 150,000 kgs by March

31, 2019. Management reiterates previous guidance that based on the Company's current confirmed production results, Aurora

will have approximately 25,000 kgs available for sale in Q4 (April to June 2019).

The Company anticipates that with Aurora Sky

operating at full capacity, as well as continued reduction in operating costs, the cash cost to produce per gram will trend significantly

lower. Management reiterates its expectation that the sustainable long-term operating cost at its Sky Class facilities will be

well below $1 per gram.

Ongoing disciplined cost management is expected

to result in SG&A costs growing modestly as compared to revenue growth over the remainder of the fiscal year.

Consequently, and consistent with previous

guidance, management believes that the combination of substantial revenue growth, low cost of production, and disciplined operating

cost management will position Aurora to achieve sustained positive EBITDA beginning in fiscal Q4 2019 (calendar Q2 2019).

Longer term, the Company expects that the launch

of new higher value-added derivative product lines in relation to anticipated changes in Health Canada regulations, as well as

the introduction of derivative products to international markets, will contribute to further revenue growth and margin expansion.

Management Commentary

"Aurora continues to execute strongly

across all of its market segments, as demonstrated by the 83% revenue growth over last quarter and the significant increase in

confirmed production results," said Terry Booth, CEO of Aurora. "Our brands continue to resonate extremely well in the

consumer market, our patient numbers continue to increase steadily, and we have maintained our market leadership in Germany and

other key international markets. We are experiencing exceptional demand for our Canadian medical and consumer products, as well

as sustained strong demand internationally. With our Aurora Sky and MedReleaf Bradford facilities ramping up production as anticipated

and our other licensed facilities operating at full capacity, we are reiterating our earlier guidance of achieving sustained EBITDA

positive results from the second calendar quarter of this year (our fiscal Q4)."

Glen Ibbott, CFO of Aurora added, "We

are also very pleased with our recent placement of US$345 million in convertible notes. These convertible notes were subscribed

by high-quality US, Canadian, and international institutions and offer Aurora the flexibility and optionality to settle the entire

principal amount of the notes in the future for cash, shares, or any combination thereof. This funding sufficiently supports the

global opportunity for us to continue our commitment to growth in the legal, regulated medical and consumer cannabis systems

across the globe. This is a unique time and position as we maintain a high cadence of increasing product supply and international

Mr. Booth concluded, "With our strong

performance in the Canadian medical and consumer markets, our early mover advantage in a growing list of important international

markets, together with our leadership in high-quality, CBD-rich hemp production, Aurora is strategically positioned across the

entire cannabis industry value chain to further extend our rapid growth."

Q2 2019 and Subsequent Operational Highlights

International Expansion

As the global cannabis market continues to

mature, Aurora has secured a distinct first-mover advantage by attaining valuable import and export agreements with markets that

have a high barrier to entry, reinforcing the Company's commitment to serving the global cannabis industry. New supply agreements

this quarter have expanded the Company's sales and operations to 23 countries.

In October 2018, Aurora Deutschland GmbH shipped products to a pain treatment center and hospital in Warsaw, making Aurora's

high-quality medical products available for Polish patients. This shipment is believed to be the first time a non-government run

business has been granted approval to supply medical cannabis products in the country.

Exports to Czech Republic

During Q2, the Company secured export permits and completed its first shipment of medical cannabis to Czech Medical Herbs s.r.o.

("CMH"), a Czech pharmaceutical wholesaler.

Export to Luxembourg

In December 2018, the Company was selected by the Luxembourg Health Ministry for the supply of medical cannabis to the country

and an initial purchase order for approximately 20 kilograms was received from Luxembourg officials. To date, Aurora is the only