Full Press Release Details
Aurora Cannabis Expands Retail Exposure
Through Strategic Investment in High Tide
Participating in a Rapidly
Growing Cannabis and Lifestyle Accessories Retailer
EDMONTON, Dec. 13, 2018 /CNW/ - Aurora Cannabis
Inc. ("Aurora" or "the Company") (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM) announced today that
it has entered into an agreement to invest $10 million by way of brokered private placement in High Tide Inc. ("High Tide"),
a privately held, Alberta-based, retail-focused cannabis and lifestyle accessories company. In total, Aurora will receive 10,000
senior unsecured convertible debentures issued by High Tide priced at $1,000 per debenture, bearing an interest rate of 8.5% per
annum, and convertible in aggregate to 13,333,333 common shares of High Tide at $0.75 per share (the "Transaction").
High Tide is developing an expanding network
across Canada of cannabis and cannabis accessory retail stores, as well as manufacturing and distributing branded cannabis accessories
which positions it exceptionally well to capitalize on the Canadian adult-use cannabis industry. Through its two wholesale businesses,
Famous Brandz and RGR Canada, and the 19 existing Smoker's Corner retail locations, High Tide serves more than 170,000 retail customers
per year. Through Canna Cabana and eventually KushBar, High Tide currently operates 4 retail stores in Alberta, with additional
leases secured with the intention of opening new locations across Canada in the near future.
Management Commentary
"In addition to four operational cannabis
retail stores, High Tide has developed a broad network of smoking accessories and cannabis lifestyle stores that feature unique
products, supported by strong branding that has resonated well with Canadian consumers," said Terry Booth, CEO of Aurora.
"Through our investment, we gain exposure to two unique retail store concepts currently launching across Canada, as well as
established cannabis culture brands and thousands of proprietary accessories. We look forward to working with the team at High
Tide and supporting them as they execute on their aggressive growth strategy."
Raj Grover, President & Chief Executive
Officer of High Tide added, "We're thrilled to gain the support and backing of Aurora as we continue to rapidly execute on
a significant number of growth initiatives across Western Canada. Our wholesale and retail segments are performing strongly in
the post-legalization environment, especially with our new cannabis retail stores providing a significant amount of momentum.
Furthermore, we are well positioned to pursue additional opportunities in Ontario's upcoming retail market. With a strong portfolio
of branded products and retail stores, we're quickly becoming one of Canada's largest retailers of cannabis products and lifestyle
High Tide's vertically-integrated portfolio
of businesses includes:
An approachable, playful and sophisticated network of
retail cannabis stores currently being opened across Canada.
4 stores currently open and performing strongly in Calgary,
Edmonton, Lethbridge and Whitecourt.
In Alberta, the maximum of 37 retail locations has been
targeted with substantially all leases, permits and licenses secured to date.
Also seeking to establish the maximum of 8 retail cannabis
stores in in British Columbia as well as the maximum of 75 retail cannabis stores in Ontario.
A complementary retail concept that provides consumers
with elevated experiences featuring proprietary products, excellent customer service and modern decor.
Strategically targeting store locations in Alberta and
High Tide owns 50.1% of KushBar Inc.
An innovative designer, manufacturer and distributor
of cannabis accessories.
High quality, low cost and global manufacturing network
Extensive product catalog which contains more than 4,200
unique SKUs, of which over 3,000 are designed by and proprietary to High Tide.
Premier manufacturer and distributor of licensed, branded
smoking products through partnerships with celebrity and entertainment brands like Snoop Dogg, Guns N' Roses and Paramount Pictures.
Distribution agreements covering Canada, the United States
and Europe; licensing agreements with unlimited global access.
Canada's largest counter-culture chain which has served
Canadian cannabis consumers since 2009.
Growth to 9 corporate owned and 10 franchise locations
across British Columbia, Alberta and Nova Scotia.
Canadian Franchise Association approved franchise program
in place to drive rapid nationwide store expansion.
Aurora has made a $10.0 million investment
in High Tide by way of a brokered private placement. The debentures will bear interest at a rate of 8.5% per annum from the closing
date of the final tranche of the Offering, payable on the last business day of each calendar quarter. The Debentures are convertible
to common shares of High Tide at a post-split price of $0.75 per common share and will mature two years from the closing date of
the Offering. The Debentures are subject to a statutory hold period that extends four months and one day from the closing
date of the Offering.
Headquartered in Edmonton, Alberta, Canada
with funded capacity in excess of 500,000 kg per annum and sales and operations in 22 countries across five continents, Aurora
is one of the world's largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across
every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis
and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.
Highly differentiated from its peers, Aurora
has established a uniquely advanced, consistent and efficient production strategy, based on purpose-built facilities that integrate
leading-edge technologies across all processes, defined by extensive automation and customization, resulting in the massive scale
production of high quality product at low cost. Intended to be replicable and scalable globally, our production facilities are
designed to produce cannabis of significant scale, with high quality, industry-leading yields, and low per gram production costs.
Each of Aurora's facilities is built to meet EU GMP standards, and its first production facility, the recently acquired MedReleaf
Markham facility, and its wholly owned European medical cannabis distributor Aurora Deutschland, have achieved this level of certification.
In addition to Aurora's rapid organic growth
and strong execution on strategic M&A, which to date includes 15 wholly owned subsidiary companies - MedReleaf, CanvasRX,
Peloton Pharmaceutical, Aurora Deutschland, H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics,
Anandia Labs, HotHouse Consulting, MED Colombia, Agropro, Borela, and ICC Labs- Aurora is distinguished by its reputation
as a partner and employer of choice in the global cannabis sector, having invested in and established strategic partnerships with
a range of leading innovators, including: Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann
Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Capcium Inc. (private), Evio
Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX: CLIQ).
Aurora's Common Shares trade on the TSX and
NYSE under the symbol "ACB", and are a constituent of the S&P/TSX Composite Index.
For more information about Aurora, please visit
our investor website, investor.auroramj.com
High Tide is an Alberta-based, retail-focused
cannabis corporation. It is among the most vertically-integrated companies in the Canadian cannabis market, with portfolio subsidiaries
including RGR Canada Inc., Smoker's Corner Ltd., Famous Brandz Inc., Canna Cabana Inc. and the majority of KushBar Inc. High Tide's
strategy as a parent company is to extend and strengthen its retail-focused integrated value chain, while providing a complete
customer experience and maximizing shareholder value.
Representing the core of High Tide's business,
RGR Canada Inc. is a high-quality and innovative designer, manufacturer and distributor of cannabis accessories. Founded in 2009
and approved by the Canadian Franchise Association, Smoker's Corner Ltd. is Canada's largest counter-culture chain with 19 current
locations. Famous Brandz Inc. is a dominant manufacturer of licensed lifestyle accessories, through partnerships with celebrities
and entertainment companies including Snoop Dogg and Paramount Pictures. Famous Brandz' products are sold to wholesalers
and retailers around the world. With the deregulation of recreational cannabis for adult use across Canada, Canna Cabana Inc. is
positioned to become a sizeable retail brand through a modern concept with a sophisticated yet playful customer experience, while