Full Press Release Details
AURORA CANNABIS INC.
Condensed Consolidated Interim Financial
For the three and six months ended December 31,
(In Canadian Dollars)
| Condensed Consolidated Interim Statements of Financial Position | 1 |
| Condensed Consolidated Interim Statements of Comprehensive Income | 2 |
| Condensed Consolidated Interim Statements of Changes in Equity | 4 |
| Condensed Consolidated Interim Statements of Cash Flows | 6 |
| Notes to the Condensed Consolidated Interim Financial Statements |
| Note 1 | Nature of Operations | 8 | Note 12 | Intangible Assets and Goodwill | 24 | |
| Note 2 | Significant Accounting Policies and Significant Judgments | 8 | Note 13 | Convertible Debentures | 25 | |
| Note 3 | Accounts Receivable | 11 | Note 14 | Loans and Borrowings | 25 | |
| Note 4 | Strategic Investments | 11 | Note 15 | Share Capital | 26 | |
| Note 5 | Marketable Securities and Derivatives | 15 | Note 16 | Share-based Payments | 27 | |
| Note 6 | Investments in Associates and Joint Venture | 17 | Note 17 | (Loss) Earnings Per Share | 28 | |
| Note 7 | Biological Assets | 17 | Note 18 | Commitments and Contingencies | 29 | |
| Note 8 | Inventory | 18 | Note 19 | Segmented Information | 30 | |
| Note 9 | Property, Plant and Equipment | 19 | Note 20 | Fair Value of Financial Instruments | 31 | |
| Note 10 | Business Combinations | 20 | Note 21 | Financial Instruments Risk | 32 | |
| Note 11 | Non-Controlling Interests | 23 | Note 22 | Subsequent Events | 33 |
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements
of Financial Position
As at December 31, 2018 and June 30, 2018
(Unaudited - In thousands of Canadian dollars, except
share and per share amounts)
| Notes | December 31, 2018 | June 30, 2018 | ||||||||||
| $ | $ | |||||||||||
| Assets | ||||||||||||
| Current | ||||||||||||
| Cash and cash equivalents | 46,772 | 75,795 | ||||||||||
| Restricted cash | 41,429 | 13,398 | ||||||||||
| Short-term investments | 1,243 | 990 | ||||||||||
| Accounts receivable | 3, 21(a) | 52,366 | 15,096 | |||||||||
| Income taxes receivable | 7,367 | - | ||||||||||
| Marketable securities | 5 (a) | 116,788 | 59,188 | |||||||||
| Biological assets | 7 | 26,087 | 13,620 | |||||||||
| Inventory | 8 | 69,776 | 29,595 | |||||||||
| Prepaids and other current assets | 31,741 | 7,594 | ||||||||||
| 393,569 | 215,276 | |||||||||||
| Assets held for distribution to owners | - | 4,422 | ||||||||||
| 393,569 | 219,698 | |||||||||||
| Property, plant and equipment | 9 | 534,237 | 246,352 | |||||||||
| Derivatives | 5 (b) | 69,437 | 124,942 | |||||||||
| Deposits | 1,497 | - | ||||||||||
| Investments in associates and joint ventures | 6 | 131,977 | 334,442 | |||||||||
| Intangible assets | 12 | 688,770 | 200,332 | |||||||||
| Goodwill | 12 | 3,056,397 | 760,744 | |||||||||
| Total assets | 4,875,884 | 1,886,510 | ||||||||||
| Liabilities | ||||||||||||
| Current | ||||||||||||
| Accounts payable and accrued liabilities | 21 (b) | 98,181 | 47,456 | |||||||||
| Income taxes payable | - | 1,659 | ||||||||||
| Deferred revenue | 905 | 2,266 | ||||||||||
| Loans and borrowings | 14 | 8,559 | 2,451 | |||||||||
| Contingent consideration payable | 20 (b) | 11,295 | 21,333 | |||||||||
| 118,940 | 75,165 | |||||||||||
| Convertible debentures | 13 | 201,627 | 191,528 | |||||||||
| Loans and borrowings | 14 | 137,370 | 9,232 | |||||||||
| Deferred gain on derivatives | 1,485 | 2,254 | ||||||||||
| Deferred tax liability | 116,411 | 55,405 | ||||||||||
| Total liabilities | 575,833 | 333,584 | ||||||||||
| Shareholders' equity | ||||||||||||
| Share capital | 15 | 4,488,761 | 1,466,433 | |||||||||
| Reserves | 85,475 | (5,285 | ) | |||||||||
| Accumulated other comprehensive loss | (159,499 | ) | (533 | ) | ||||||||
| Retained earnings (deficit) | (122,346 | ) | 87,749 | |||||||||
| Total equity attributable to Aurora shareholders | 4,292,391 | 1,548,364 | ||||||||||
| Non-controlling interests | 11 | 7,660 | 4,562 | |||||||||
| Total equity | 4,300,051 | 1,552,926 | ||||||||||
| Total liabilities and equity | 4,875,884 | 1,886,510 | ||||||||||
| Nature of Operations (Note 1) | ||||||||||||
| Commitments and Contingencies (Note 18) | ||||||||||||
| Subsequent Events (Note 22) | ||||||||||||
| The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. |
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements
of Comprehensive (Loss) Income
Three and six months ended December 31, 2018 and
(Unaudited - In thousands of Canadian dollars, except
share and per share amounts)
| Three months ended | Six months ended | |||||||||||||||||||
| December 31 | December 31 | |||||||||||||||||||
| Notes | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Revenue from sale of goods | 59,411 | 10,826 | 85,869 | 18,141 | ||||||||||||||||
| Revenue from provision of services | 2,589 | 874 | 5,805 | 1,808 | ||||||||||||||||
| Gross revenue | 62,000 | 11,700 | 91,674 | 19,949 | ||||||||||||||||
| Excise taxes | (7,822 | ) | - | (7,822 | ) | - | ||||||||||||||
| Net revenue | 54,178 | 11,700 | 83,852 | 19,949 | ||||||||||||||||
| Cost of sales | 25,800 | 4,837 | 35,342 | 7,909 | ||||||||||||||||
| Gross profit before fair value adjustments | 28,378 | 6,863 | 48,510 | 12,040 | ||||||||||||||||
| Changes in fair value of inventory sold | 21,620 | 4,015 | 35,981 | 6,587 | ||||||||||||||||
| Unrealized gain on changes in fair value of biological assets | 7 | (25,384 | ) | (3,639 | ) | (27,663 | ) | (9,844 | ) | |||||||||||
| Gross profit | 32,142 | 6,487 | 40,192 | 15,297 | ||||||||||||||||
| Expense | ||||||||||||||||||||
| General and administration | 43,621 | 7,568 | 79,564 | 10,561 | ||||||||||||||||
| Sales and marketing | 22,741 | 5,136 | 52,117 | 8,804 | ||||||||||||||||
| Acquisition costs | 5,692 | 1,756 | 20,672 | 2,096 | ||||||||||||||||
| Research and development | 1,811 | 172 | 5,237 | 279 | ||||||||||||||||
| Depreciation and amortization | 9, 12 | 19,263 | 460 | 34,385 | 1,094 | |||||||||||||||
| Share-based compensation | 16 (a), 16(b) | 19,204 | 7,456 | 40,280 | 9,942 | |||||||||||||||
| 112,332 | 22,548 | 232,255 | 32,776 | |||||||||||||||||
| Loss from operations | (80,190 | ) | (16,061 | ) | (192,063 | ) | (17,479 | ) | ||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Interest and other income | 128 | 765 | 878 | 1,355 | ||||||||||||||||
| Finance and other costs | (10,208 | ) | (1,660 | ) | (18,735 | ) | (3,676 | ) | ||||||||||||
| Foreign exchange gain | (37 | ) | 511 | 92 | 264 | |||||||||||||||
| Share of loss from investment in associates | 6 | (894 | ) | (52 | ) | (3,009 | ) | (52 | ) | |||||||||||
| Impairment of investment in associates | 6 | (69,957 | ) | - | (69,957 | ) | - | |||||||||||||
| Gain (loss) on loss of control of subsidiary | 4 (f) | (12 | ) | - | 398 | - | ||||||||||||||
| Unrealized loss on changes in contingent consideration fair value | 20 (b) | (692 | ) | - | (2,065 | ) | - | |||||||||||||
| Unrealized gains on marketable securities | 5 | - | 3,700 | - | 3,700 | |||||||||||||||
| Unrealized (losses) gains on derivatives | 5 | (119,872 | ) | 22,786 | (32,927 | ) | 30,540 | |||||||||||||
| Gain on debt modification | 14 | 1,774 | - | 1,774 | - | |||||||||||||||
| Gain on deemed disposal of significant influence investment | 4 (e) | - | - | 144,368 | - | |||||||||||||||
| (199,770 | ) | 26,050 | 20,817 | 32,131 | ||||||||||||||||
| (Loss) income before taxes | (279,960 | ) | 9,989 | (171,246 | ) | 14,652 | ||||||||||||||
| Income tax recovery (expense) | ||||||||||||||||||||
| Current | 6,499 | (38 | ) | 6,499 | (38 | ) | ||||||||||||||
| Deferred, net | 33,819 | (2,756 | ) | 29,286 | (3,859 | ) | ||||||||||||||
| 40,318 | (2,794 | ) | 35,785 | (3,897 | ) | |||||||||||||||
| Net (loss) income | (239,642 | ) | 7,195 | (135,461 | ) | 10,755 | ||||||||||||||
| Other comprehensive (loss) income | ||||||||||||||||||||
| Deferred tax recovery (expense) | 25,983 | (99 | ) | 18,519 | (1,731 | ) | ||||||||||||||
| Unrealized (losses) gains on marketable securities | 5 | (194,346 | ) | 274 | (106,760 | ) | 12,825 | |||||||||||||
| Foreign currency translation gain (loss) | 3,004 | 29 | (254 | ) | 25 | |||||||||||||||
| (165,359 | ) | 204 | (88,495 | ) | 11,119 | |||||||||||||||
| Comprehensive (loss) income | (405,001 | ) | 7,399 | (223,956 | ) | 21,874 |
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements
of Comprehensive (Loss) Income
Three and six months ended December 31, 2018 and
(Unaudited - In thousands of Canadian dollars, except
share and per share amounts)
| (Continued) | ||||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||
| December 31 | December 31 | |||||||||||||||||||
| Notes | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Net (loss) income attributable to: | ||||||||||||||||||||
| Aurora Cannabis Inc. | (237,752 | ) | 7,722 | (132,290 | ) | 11,282 | ||||||||||||||
| Non-controlling interests | (1,890 | ) | (527 | ) | (3,171 | ) | (527 | ) | ||||||||||||
| Comprehensive (loss) income attributable to: | ||||||||||||||||||||
| Aurora Cannabis Inc. | (403,103 | ) | 7,926 | (220,763 | ) | 22,401 | ||||||||||||||
| Non-controlling interests | (1,898 | ) | (527 | ) | (3,193 | ) | (527 | ) | ||||||||||||
| Net (loss) earnings per share | ||||||||||||||||||||
| Basic | 17 | ($0.25 | ) | $0.02 | ($0.14 | ) | $0.03 | |||||||||||||
| Diluted | 17 | ($0.25 | ) | $0.02 | ($0.14 | ) | $0.03 |
The accompanying notes are an integral part of these Condensed Consolidated
Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of
Six months ended December 31, 2018 and 2017
(Unaudited - In thousands of Canadian dollars, except share
and per share amounts)
| Share Capital | Reserves | AOCI | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Note | Common Shares | Amount | Share-Based Compensation | Compensation Options/ Warrants | Convertible Notes | Change in Ownership Interest | Total Reserves | Fair Value | Deferred Tax | Foreign Currency Translation | Total AOCI | Retained Earnings (Deficit) | Non- Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||
| # | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2018 | 568,113,131 | 1,466,433 | 38,335 | 307 | 41,792 | (85,719 | ) | (5,285 | ) | (539 | ) | (55 | ) | 61 | (533 | ) | 87,749 | 4,562 | 1,552,926 | ||||||||||||||||||||||||||||||||||||||||
| Shares issued for business combinations & asset acquisitions | 15(b)(i) | 416,692,177 | 2,917,019 | 75,490 | 27,111 | - | - | 102,601 | - | - | - | - | - | - | 3,019,620 | ||||||||||||||||||||||||||||||||||||||||||||
| Shares released for earn out payments | 217,917 | 12,336 | - | - | - | - | - | - | - | - | - | - | - | 12,336 | |||||||||||||||||||||||||||||||||||||||||||||
| Contingent consideration | - | - | - | 3,283 | - | - | 3,283 | - | - | - | - | - | - | 3,283 | |||||||||||||||||||||||||||||||||||||||||||||
| Conversion of notes | 331,328 | 1,539 | - | - | (469 | ) | - | (469 | ) | - | - | - | - | - | - | 1,070 | |||||||||||||||||||||||||||||||||||||||||||
| Deferred tax on convertible notes | - | - | - | - | 425 | - | 425 | - | - | - | - | - | - | 425 | |||||||||||||||||||||||||||||||||||||||||||||
| Exercise of stock options | 16(a)(b) | 10,854,967 | 81,255 | (49,777 | ) | - | - | - | (49,777 | ) | - | - | - | - | - | 415 | 31,893 | ||||||||||||||||||||||||||||||||||||||||||
| Exercise of warrants | 15(c) | 1,206,561 | 6,887 | - | (320 | ) | - | - | (320 | ) | - | - | - | - | - | - | 6,567 | ||||||||||||||||||||||||||||||||||||||||||
| Exercise of RSUs | 16(b) | 666,663 | 1,840 | (1,840 | ) | - | - | - | (1,840 | ) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||
| Forfeited options | 16(a) | - | - | (3,419 | ) | - | - | - | (3,419 | ) | - | - | - | - | 3,419 | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | 16 (a)(b) | - | - | 40,280 | - | - | - | 40,280 | - | - | - | - | - | - | 40,280 | ||||||||||||||||||||||||||||||||||||||||||||
| Contribution from NCI | 11 | - | - | - | - | - | - | - | - | - | - | - | - | 5,850 | 5,850 | ||||||||||||||||||||||||||||||||||||||||||||
| Change in ownership interests in subsidiaries | 11 | - | - | - | - | - | (4 | ) | (4 | ) | - | - | - | - | - | 4 | - | ||||||||||||||||||||||||||||||||||||||||||
| Australis Capital first tranche private placement proceeds | - | 7,800 | - | - | - | - | - | - | - | - | - | - | - | 7,800 | |||||||||||||||||||||||||||||||||||||||||||||
| Australis Capital NCI reclass on loss of control | - | (6,348 | ) | - | - | - | - | - | - | - | - | - | - | 6,348 | - | ||||||||||||||||||||||||||||||||||||||||||||
| Spin-out of Australis Capital | - | - | - | - | - | - | - | - | - | - | - | (151,695 | ) | (6,348 | ) | (158,043 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Reclass gain from Australis Capital shares on derecognition upon spin-out | - | - | - | - | - | - | - | (76,873 | ) | 6,402 | - | (70,471 | ) | 70,471 | - | - | |||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) for the period | - | - | - | - | - | - | (106,760 | ) | 18,519 | (254 | ) | (88,495 | ) | (132,290 | ) | (3,171 | ) | (223,956 | ) | ||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2018 | 998,082,744 | 4,488,761 | 99,069 | 30,381 | 41,748 | (85,723 | ) | 85,475 | (184,172 | ) | 24,866 | (193 | ) | (159,499 | ) | (122,346 | ) | 7,660 | 4,300,051 |
The accompanying notes are an integral part
of these Condensed Consolidated Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of
Six months ended December 31, 2018 and 2017
(Unaudited - In thousands of Canadian dollars, except share
and per share amounts)
| (Continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share Capital | Reserves | AOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Shares | Amount | Share-Based Compensation | Compensation Options/ Warrants | Convertible Notes | Change in Ownership Interest | Total Reserves | Fair Value | Deferred Tax | Foreign Currency Translation | Total AOCI | Retained Earnings (Deficit) | Non- Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||
| # | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2017 | 366,549,244 | 221,447 | 7,591 | 3,420 | 9,734 | - | 20,745 | 6,077 | (885 | ) | (25 | ) | 5,167 | (28,426 | ) | - | 218,933 | |||||||||||||||||||||||||||||||||||||||
| Shares issued for acquisition | 4,878,380 | 15,530 | - | - | - | - | - | - | - | - | - | - | - | 15,530 | ||||||||||||||||||||||||||||||||||||||||||
| Warrants issued for acquisition | - | - | - | 136 | - | - | 136 | - | - | - | - | - | - | 136 | ||||||||||||||||||||||||||||||||||||||||||
| Shares issued for earn out payments | 5,016,293 | 11,656 | - | - | - | - | - | - | - | - | - | - | - | 11,656 | ||||||||||||||||||||||||||||||||||||||||||
| Shares issued for equity financings | 25,000,000 | 75,000 | - | - | - | - | - | - | - | - | - | - | - | 75,000 | ||||||||||||||||||||||||||||||||||||||||||
| Share issue costs | - | (6,640 | ) | - | 2,286 | - | - | 2,286 | - | - | - | - | - | - | (4,354 | ) | ||||||||||||||||||||||||||||||||||||||||
| Conversion of notes | 25,060,747 | 76,524 | - | - | (9,734 | ) | - | (9,734 | ) | - | - | - | - | - | - | 66,790 | ||||||||||||||||||||||||||||||||||||||||
| Deferred tax on convertible notes | - | 4,554 | - | - | - | - | - | - | - | - | - | - | - | 4,554 | ||||||||||||||||||||||||||||||||||||||||||
| Exercise of stock options | 2,312,590 | 5,813 | (2,008 | ) | - | - | - | (2,008 | ) | - | - | - | - | - | 123 | 3,928 | ||||||||||||||||||||||||||||||||||||||||
| Exercise of warrants | 38,621,631 | 121,529 | - | (2,535 | ) | - | - | (2,535 | ) | - | - | - | - | - | 694 | 119,688 | ||||||||||||||||||||||||||||||||||||||||
| Exercise of compensation options/warrants | 1,865,249 | 6,051 | - | (1,854 | ) | - | - | (1,854 | ) | - | - | - | - | - | - | 4,197 | ||||||||||||||||||||||||||||||||||||||||
| Exercise of restricted share units | 127,128 | 1,209 | (351 | ) | - | - | - | (351 | ) | - | - | - | - | - | - | 858 | ||||||||||||||||||||||||||||||||||||||||
| Forfeited options | - | - | (430 | ) | - | - | - | (430 | ) | - | - | - | - | 430 | - | - | ||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | - | - | 10,293 | - | - | - | 10,293 | - | - | - | - | - | - | 10,293 | ||||||||||||||||||||||||||||||||||||||||||
| Non-controlling interest from acquisitions | - | - | - | - | - | - | - | - | - | - | - | - | 6,503 | 6,503 | ||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) for the period | - | - | - | - | - | - | - | 12,825 | (1,731 | ) | 25 | 11,119 | 11,282 | (527 | ) | 21,874 | ||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2017 | 469,431,262 | 532,673 | 15,095 | 1,453 | - | - | 16,548 | 18,902 | (2,616 | ) | - | 16,286 | (16,714 | ) | 6,793 | 555,586 |
The accompanying notes are an integral part of these Condensed Consolidated
Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements
Six months ended December 31, 2018 and 2017
(Unaudited - In thousands of Canadian dollars, except
share and per share amounts)
| Notes | 2018 | 2017 | |||||||||
| $ | $ | ||||||||||
| Operating activities | |||||||||||
| Net (loss) income for the period | (135,461 | ) | 10,755 | ||||||||
| Adjustments for non-cash items: | |||||||||||
| Unrealized gain on changes in fair value of biological assets | 7 | (27,663 | ) | (9,844 | ) | ||||||
| Changes in fair value included in inventory sold | 35,981 | 6,587 | |||||||||
| Depreciation of property, plant and equipment | 9 | 19,632 | 886 | ||||||||
| Amortization of intangible assets | 12 | 22,349 | 569 | ||||||||
| Share-based compensation | 16 | 40,280 | 9,942 | ||||||||
| Non-cash compensation expense from acquisitions | 3,283 | - | |||||||||
| Share of loss from investment in associates | 6 | 3,009 | 52 | ||||||||
| Unrealized gain on derivatives | 5 | 32,927 | (30,540 | ) | |||||||
| Unrealized gain on marketable securities | 5 | - | (3,700 | ) | |||||||
| Unrealized gain on deemed disposal of significant influence investment | 4(e) | (144,368 | ) | - | |||||||
| Gain on loss of control of subsidiary | 4(f) | (398 | ) | - | |||||||
| Loss on changes in fair value of contingent consideration | 20(b) | 2,065 | - | ||||||||
| Impairment on investment in associate | 6 | 69,957 | - | ||||||||
| Gain on debt modification | 14 | (1,774 | ) | - | |||||||
| Non-cash acquisition costs | 10(c) | 2,230 | - | ||||||||
| Accrued interest and accretion expense | 10,256 | 2,569 | |||||||||
| Interest and other income | (63 | ) | (59 | ) | |||||||
| Deferred tax expense | (29,286 | ) | 3,859 | ||||||||
| Changes in non-cash working capital | |||||||||||
| GST recoverable | (11,256 | ) | (2,573 | ) | |||||||
| Accounts receivable | (8,311 | ) | 46 | ||||||||
| Biological assets | (9,475 | ) | - | ||||||||
| Inventory | (8,554 | ) | (2,653 | ) | |||||||
| Prepaid and other current assets | (17,127 | ) | 450 | ||||||||
| Accounts payable and accrued liabilities | 27,388 | 4,829 | |||||||||
| Income taxes payable | (7,140 | ) | - | ||||||||
| Deferred revenue | (1,433 | ) | 56 | ||||||||
| Net cash used in operating activities | (132,952 | ) | (8,769 | ) | |||||||
| Investing activities | |||||||||||
| Short-term investments | (253 | ) | (397 | ) | |||||||
| Marketable securities, derivatives and convertible debenture investments | 5 | (49,286 | ) | (39,748 | ) | ||||||
| Proceeds from disposal of marketable securities | 5 | 35,593 | - | ||||||||
| Promissory notes receivable | - | (4,236 | ) | ||||||||
| Purchase of property, plant and equipment | 9 | (150,107 | ) | (53,936 | ) | ||||||
| Acquisition of businesses, net of cash acquired | 10 | 119,558 | (8,522 | ) | |||||||
| Acquisition of assets, net of cash acquired | - | (955 | ) | ||||||||
| Deposits | (1,497 | ) | (596 | ) | |||||||
| Investments in associates | 6 | 959 | - | ||||||||
| Net cash used in investing activities | (45,033 | ) | (108,390 | ) | |||||||
| Financing activities | |||||||||||
| Proceeds from long term loans | 150,972 | - | |||||||||
| Repayment of long term loans | (9,096 | ) | - | ||||||||
| Repayment of short term loans | (2,249 | ) | (34 | ) | |||||||
| Financing fees | (4,495 | ) | - | ||||||||
| Shares issued for cash, net of share issue costs | 38,446 | 197,421 | |||||||||
| Special warrant subscriptions | - | 111,009 | |||||||||
| Capital contribution from non-controlling interest | 5,854 | - | |||||||||
| Net cash provided by financing activities | 179,432 | 308,396 | |||||||||
| Effect of foreign exchange on cash and cash equivalents | (2,439 | ) | (192 | ) | |||||||
| Increase (decrease) in cash and cash equivalents | (992 | ) | 191,045 | ||||||||
| Cash and cash equivalents, beginning of year | 89,193 | 159,796 | |||||||||
| Cash and cash equivalents, end of period | 88,201 | 350,841 |
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements
Six months ended December 31, 2018 and 2017
(Unaudited - In thousands of Canadian dollars, except
share and per share amounts)
| (Continued) | ||||||||
| 2018 | 2017 | |||||||
| $ | $ | |||||||
| Cash and cash equivalents consist of: | ||||||||
| Cash | 46,772 | 75,795 | ||||||
| Restricted cash (i) | 41,429 | 13,398 | ||||||
| Supplementary information: | ||||||||
| Property, plant and equipment in accounts payable | 18,451 | 11,099 | ||||||
| Capitalized borrowing costs | 1,452 | 2,471 | ||||||
| Interest paid | 5,809 | 2,279 | ||||||
| Interest received | 239 | - |
The accompanying notes are an integral part of these Condensed
Consolidated Interim Financial Statements.
AURORA CANNABIS INC.
Notes to the Condensed Consolidated Interim
Financial Statements
Three and six months ended December 31, 2018 and 2017
(Unaudited - In thousands of Canadian dollars, except share and
Aurora Cannabis Inc. (the "Company"
or "Aurora") was incorporated under the Business Corporations Act of British Columbia on December 21, 2006.
The Company's shares are listed on the New York Stock Exchange ("NYSE") and the Toronto Stock Exchange ("TSX")
under the trading symbol "ACB", and on the Frankfurt Stock Exchange ("FSE") under the trading symbol "21P".
The Company's head office and principal address
is Suite 500 - 10355 Jasper Avenue, Edmonton, Alberta, Canada, T5J 1Y6. The Company's registered and records office address
is Suite 1500 - 1055 West Georgia Street, Vancouver, BC V6E 4N7.
The Company's principal business is the
production, distribution and sale of cannabis products in Canada and internationally. Aurora conducts the following key business
activities in the countries listed below:
Through its recent acquisitions (Note 10),
the Company expanded its business to include research and development, the production and sale of indoor cultivation systems, and
the production and sale of hemp related products.
Aurora does not engage in any federally illegal
U.S. cannabis-related activities. While the Company previously held an interest in a U.S. based company, Australis Holdings LLP
("Australis Holdings" or "AHL"), AHL has not engaged in any cannabis-related activities for the periods
presented. AHL was spun-out to Aurora shareholders as part of the Australis Capital Inc. spin-out transaction completed on September
19, 2018 (Note 4(f)).
Accounting Policies and Significant Judgments
The condensed consolidated interim financial
statements of the Company have been prepared under International Financial Reporting Standards ("IFRS") in accordance
with International Accounting Standards 34, "Interim Financial Reporting" ("IAS 34") as issued by
the International Accounting Standards Board ("IASB") and interpretations of the IFRS Interpretations Committee ("IFRIC").
The condensed consolidated interim financial
statements are presented in Canadian dollars and are prepared in accordance with the same accounting policies, critical estimates
and methods described in the Company's annual consolidated financial statements, except for the adoption of new accounting
standards identified in Note 2(d). Given that certain information and footnote disclosures, which are included in the annual audited
consolidated financial statements, have been condensed or excluded in accordance with IAS 34, these financial statements should
be read in conjunction with our annual audited consolidated financial statements as at and for the year ended June 30, 2018, including
the accompanying notes thereto.
For comparative purposes, the Company has reclassified
certain immaterial items on the condensed consolidated interim statement of financial position and the condensed consolidated interim
statement of comprehensive income to conform with current period's presentation.
These condensed consolidated interim
financial statements include the accounts of the Company and its subsidiaries with intercompany balances and transactions eliminated
on consolidation. Subsidiaries include entities over which Aurora has the authority or ability to exert power over the investee's