Full Press Release Details
Aurora Cannabis Announces Sale of Aurora Sun
Facility to Bevo Expected to Provide Incremental Revenue and Cash Flow
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
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
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/aurora-cannabis-announces-sale-of-aurora-sun-facility-to-bevo-expected-to-provide-incremental-revenue-and-cash-flow-301883527.html
SOURCE Aurora Cannabis Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2023/24/c4868.html
For further information: For Media: Michelle Lefler, VP, Communications
& PR, media@auroramj.com; For Investors: ICR, Inc., Investor Relations, aurora@icrinc.com
CO: Aurora Cannabis Inc.
CNW 07:00e 24-JUL-23