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 | 3 |
| Condensed Consolidated Interim Statements of Comprehensive (Loss) Income | 4 |
| Condensed Consolidated Interim Statements of Changes in Equity | 6 |
| Condensed Consolidated Interim Statements of Cash Flows | 8 |
| Notes to the Condensed Consolidated Interim Financial Statements |
| Note 1 | Nature of Operations | 9 | Note 13 | Convertible Debentures | 23 | |
| Note 2 | Significant Accounting Policies and Judgments | 9 | Note 14 | Loans and Borrowings | 24 | |
| Note 3 | Accounts Receivable | 11 | Note 15 | Share Capital | 25 | |
| Note 4 | Strategic Investments | 12 | Note 16 | Share-Based Compensation | 26 | |
| Note 5 | Marketable Securities and Derivatives | 15 | Note 17 | Earnings Per Share | 27 | |
| Note 6 | Investments in Associates and Joint Ventures | 17 | Note 18 | Other (Expense) Income, Net | 28 | |
| Note 7 | Biological Assets | 17 | Note 19 | Supplementary Cash Flow Information | 28 | |
| Note 8 | Inventory | 18 | Note 20 | Commitments and Contingencies | 28 | |
| Note 9 | Property, Plant and Equipment | 18 | Note 22 | Segmented Information | 31 | |
| Note 10 | Non-Controlling Interests | 20 | Note 23 | Fair Value of Financial Instruments | 32 | |
| Note 11 | Assets Held for Sale | 20 | Note 24 | Financial Instruments Risk | 33 | |
| Note 12 | Intangible Assets and Goodwill | 21 | Note 25 | Subsequent Events | 34 |
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Financial Position
As at December 31, 2019 and June 30, 2019
(Unaudited - Amounts reflected in thousands of Canadian dollars)
| Notes | December 31, 2019 | June 30, 2019 | |||
| $ | $ | ||||
| Assets | |||||
| Current | |||||
| Cash and cash equivalents | 156,334 | 172,727 | |||
| Restricted cash | 14(a) | 45,002 | 46,066 | ||
| Accounts receivable | 3, 24(a) | 82,264 | 103,493 | ||
| Income taxes receivable | 5,290 | 8,833 | |||
| Marketable securities | 5(a) | 26,148 | 143,248 | ||
| Derivatives | 5(b) | 9,551 | - | ||
| Biological assets | 7 | 45,617 | 51,836 | ||
| Inventory | 8 | 205,543 | 113,641 | ||
| Prepaids and other current assets | 35,876 | 24,323 | |||
| Assets held for sale | 11 | 18,234 | - | ||
| 629,859 | 664,167 | ||||
| Property, plant and equipment | 9 | 1,001,917 | 765,567 | ||
| Derivatives | 5(b) | 43,918 | 86,409 | ||
| Deposits | 10,406 | 6,926 | |||
| Loan receivable | 3,312 | - | |||
| Investments in associates and joint ventures | 6 | 69,681 | 118,845 | ||
| Intangible assets | 12 | 503,534 | 688,366 | ||
| Goodwill | 12 | 2,409,285 | 3,172,550 | ||
| Total assets | 4,671,912 | 5,502,830 | |||
| Liabilities | |||||
| Current | |||||
| Accounts payable and accrued liabilities | 24(b) | 125,432 | 152,884 | ||
| Deferred revenue | 21 | 6,151 | 749 | ||
| Convertible debentures | 13 | 30,632 | 235,909 | ||
| Loans and borrowings | 14 | 27,055 | 13,758 | ||
| Contingent consideration payable | 23 | 24,633 | 28,137 | ||
| Deferred gain on derivatives | 20 | 728 | |||
| Provisions | 20(a) | - | 4,200 | ||
| 213,923 | 436,365 | ||||
| Convertible debentures | 13 | 271,122 | 267,672 | ||
| Loans and borrowings | 14 | 273,314 | 127,486 | ||
| Derivative liability | 13(ii) | 8,470 | 177,395 | ||
| Other long-term liability | - | 11,979 | |||
| Deferred tax liability | 81,283 | 91,886 | |||
| Total liabilities | 848,112 | 1,112,783 | |||
| Shareholders' equity | |||||
| Share capital | 15 | 5,456,618 | 4,673,118 | ||
| Reserves | 138,461 | 139,327 | |||
| Accumulated other comprehensive loss | (170,935 | ) | (143,170 | ) | |
| Deficit | (1,580,499 | ) | (283,638 | ) | |
| Total equity attributable to Aurora shareholders | 3,843,645 | 4,385,637 | |||
| Non-controlling interests | 10 | (19,845 | ) | 4,410 | |
| Total equity | 3,823,800 | 4,390,047 | |||
| Total liabilities and equity | 4,671,912 | 5,502,830 |
Nature of Operations (Note 1)
Strategic Investments (Note 4)
Commitments and Contingencies (Note 20)
Subsequent Events (Note 14(a) and 25)
The accompanying notes are an integral part of these Condensed
Consolidated Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Comprehensive Loss
Three and six months ended December 31, 2019 and 2018
(Unaudited - Amounts reflected in thousands of Canadian dollars, except share and per share amounts)
| Three months ended December 31, | Six months ended December 31, | ||||||||
| Notes | 2019 | 2018 | 2019 | 2018 | |||||
| $ | $ | $ | $ | ||||||
| Revenue from sale of goods | 21 | 63,667 | 59,411 | 146,980 | 85,869 | ||||
| Revenue from provision of services | 21 | 1,355 | 2,589 | 3,199 | 5,805 | ||||
| Excise taxes | (8,995 | ) | (7,822 | ) | (18,907 | ) | (7,822 | ) | |
| Net revenue | 56,027 | 54,178 | 131,272 | 83,852 | |||||
| Cost of sales | 33,214 | 25,800 | 65,953 | 39,762 | |||||
| Gross profit before fair value adjustments | 22,813 | 28,378 | 65,319 | 44,090 | |||||
| Changes in fair value of inventory sold | 22,778 | 21,620 | 41,312 | 31,561 | |||||
| Unrealized gain on changes in fair value of biological assets | 7 | (29,880 | ) | (25,384 | ) | (59,616 | ) | (27,663 | ) |
| Gross profit | 29,915 | 32,142 | 83,623 | 40,192 | |||||
| Expense | |||||||||
| General and administration | 70,751 | 43,621 | 129,872 | 79,564 | |||||
| Sales and marketing | 29,131 | 22,741 | 51,142 | 52,117 | |||||
| Acquisition costs | 2,059 | 5,692 | 3,023 | 20,672 | |||||
| Research and development | 6,775 | 1,811 | 12,823 | 5,237 | |||||
| Depreciation and amortization | 9, 12 | 20,847 | 19,263 | 39,056 | 34,385 | ||||
| Share-based compensation | 16(a)(b) | 19,963 | 19,204 | 44,720 | 40,280 | ||||
| 149,526 | 112,332 | 280,636 | 232,255 | ||||||
| Loss from operations | (119,611 | ) | (80,190 | ) | (197,013 | ) | (192,063 | ) | |
| Other (expense) income | |||||||||
| Interest and other income | 2,194 | 128 | 3,171 | 878 | |||||
| Finance and other costs | (23,877 | ) | (10,208 | ) | (41,788 | ) | (18,735 | ) | |
| Foreign exchange ("FX") loss | (999 | ) | (37 | ) | (4,708 | ) | (508 | ) | |
| Other (expense) income, net | 18 | (168,807 | ) | (119,696 | ) | (41,151 | ) | 109,139 | |
| Impairment of property, plant and equipment | 9 | (51,925 | ) | - | (51,925 | ) | - | ||
| Impairment of investment in associates | 6 | (46,226 | ) | (69,957 | ) | (46,226 | ) | (69,957 | ) |
| Impairment of intangible assets | 12 | (158,695 | ) | - | (158,695 | ) | - | ||
| Impairment of goodwill | 12 | (762,231 | ) | - | (762,231 | ) | - | ||
| (1,210,566 | ) | (199,770 | ) | (1,103,553 | ) | 20,817 | |||
| Loss before taxes | (1,330,177 | ) | (279,960 | ) | (1,300,566 | ) | (171,246 | ) | |
| Income tax recovery (expense) | |||||||||
| Current | 123 | 6,499 | 4,702 | 6,499 | |||||
| Deferred, net | 24,156 | 33,819 | 336 | 29,286 | |||||
| 24,279 | 40,318 | 5,038 | 35,785 | ||||||
| Net loss | (1,305,898 | ) | (239,642 | ) | (1,295,528 | ) | (135,461 | ) | |
| Other comprehensive (loss) income ("OCI") that will not be reclassified to net loss | |||||||||
| Deferred tax recovery | 1,179 | 25,983 | 3,085 | 18,519 | |||||
| Unrealized loss on marketable securities | 5(a) | (11,481 | ) | (194,346 | ) | (30,555 | ) | (106,760 | ) |
| (10,302 | ) | (168,363 | ) | (27,470 | ) | (88,241 | ) | ||
| Other comprehensive (loss) income that may be reclassified to net loss | |||||||||
| Share of income (loss) from investment in associates | 69 | - | (23 | ) | - | ||||
| Foreign currency translation gain (loss) | (3,701 | ) | 3,002 | (5,497 | ) | (254 | ) | ||
| (3,632 | ) | 3,002 | (5,520 | ) | (254 | ) | |||
| Total other comprehensive loss | (13,934 | ) | (165,361 | ) | (32,990 | ) | (88,495 | ) | |
| Comprehensive loss | (1,319,832 | ) | (405,003 | ) | (1,328,518 | ) | (223,956 | ) |
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Comprehensive Loss
Three and six months ended December 31, 2019 and 2018
(Unaudited - Amounts reflected in thousands of Canadian dollars, except share and per share amounts)
| Three months ended December 31, | Six months ended December 31, | ||||||||
| Notes | 2019 | 2018 | 2019 | 2018 | |||||
| $ | $ | $ | $ | ||||||
| Net loss attributable to: | |||||||||
| Aurora Cannabis Inc. | (1,286,129 | ) | (237,752 | ) | (1,273,373 | ) | (132,290 | ) | |
| Non-controlling interests | (19,769 | ) | (1,890 | ) | (22,155 | ) | (3,171 | ) | |
| Comprehensive loss attributable to: | |||||||||
| Aurora Cannabis Inc. | (1,299,964 | ) | (403,105 | ) | (1,306,356 | ) | (220,763 | ) | |
| Non-controlling interests | (19,868 | ) | (1,898 | ) | (22,162 | ) | (3,193 | ) | |
| Net loss per share | |||||||||
| Basic and diluted | 17 | ($1.18 | ) | ($0.25 | ) | ($1.17 | ) | ($0.14 | ) |
The accompanying notes are an integral part of these Condensed
Consolidated Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Changes in Equity
Six months ended December 31, 2019
(Unaudited - Amounts reflected in thousands of Canadian dollars, except 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 | Associate OCI Pick-up | Foreign Currency Translation | Total AOCI | Retained Earnings (Deficit) | Non-Controlling Interests | Total | ||||||||||||||||||
| # | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| Balance, June 30, 2019 | 1,017,438,744 | 4,673,118 | 143,947 | 40,495 | 41,685 | (86,800 | ) | 139,327 | (156,249 | ) | 18,295 | 352 | (5,568 | ) | (143,170 | ) | (283,638 | ) | 4,410 | 4,390,047 | |||||||||||||
| Shares released for earn out payments | 328,935 | 4,075 | - | (2,893 | ) | - | - | (2,893 | ) | - | - | - | - | - | - | - | 1,182 | ||||||||||||||||
| Shares issued through equity financing | 15(b) | 77,507,893 | 325,183 | - | - | - | - | - | - | - | - | - | - | - | - | 325,183 | |||||||||||||||||
| Share issuance costs | - | (7,101 | ) | - | - | - | - | - | - | - | - | - | - | - | - | (7,101 | ) | ||||||||||||||||
| Conversion of notes | 13(i) | 69,135,117 | 433,177 | - | - | (41,266 | ) | - | (41,266 | ) | - | - | - | - | - | - | - | 391,911 | |||||||||||||||
| Deferred tax on convertible notes | - | 688 | - | - | 1,888 | - | 1,888 | - | - | - | - | - | - | - | 2,576 | ||||||||||||||||||
| Exercise of stock options | 16(a) | 938,264 | 6,092 | (3,468 | ) | - | - | - | (3,468 | ) | - | - | - | - | - | - | - | 2,624 | |||||||||||||||
| Exercise of warrants | 15(c) | 11,826 | 102 | - | (29 | ) | - | - | (29 | ) | - | - | - | - | - | - | - | 73 | |||||||||||||||
| Exercise of RSUs | 16(b) | 218,332 | 921 | (921 | ) | - | - | - | (921 | ) | - | - | - | - | - | - | - | - | |||||||||||||||
| Share-based compensation | - | - | 37,840 | 7,983 | - | - | 45,823 | - | - | - | - | - | - | - | 45,823 | ||||||||||||||||||
| Change in ownership interests in subsidiaries | 10 | 2,610,642 | 20,363 | - | - | - | - | - | - | - | - | - | - | (18,263 | ) | (2,100 | ) | - | |||||||||||||||
| Choom marketable securities transferred to investment in associate | 4(g) | - | - | - | - | - | - | - | 5,225 | - | - | - | 5,225 | (5,225 | ) | - | - | ||||||||||||||||
| Comprehensive income (loss) for the period | - | - | - | - | - | - | - | (30,555 | ) | 3,085 | (23 | ) | (5,497 | ) | (32,990 | ) | (1,273,373 | ) | (22,155 | ) | (1,328,518 | ) | |||||||||||
| Balance, December 31, 2019 | 1,168,189,753 | 5,456,618 | 177,398 | 45,556 | 2,307 | (86,800 | ) | 138,461 | (181,579 | ) | 21,380 | 329 | (11,065 | ) | (170,935 | ) | (1,580,499 | ) | (19,845 | ) | 3,823,800 |
The accompanying notes are an integral part
of these Condensed Consolidated Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Changes in Equity
Six months ended December 31, 2018
(Unaudited - Amounts reflected in thousands of Canadian dollars, except share amounts)
| 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 | Associate OCI Pick-up | Foreign Currency Translation | Total AOCI | Retained Earnings | 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 | 416,692,177 | 2,917,019 | 75,490 | 27,111 | - | - | 102,601 | - | - | - | - | - | - | - | 3,019,620 | ||||||||||||||||||
| Shares issued for earn out payments | 217,917 | 12,336 | - | 3,283 | - | - | 3,283 | - | - | - | - | - | - | - | 15,619 | ||||||||||||||||||
| Conversion of notes | 331,328 | 1,539 | - | - | (469 | ) | - | (469 | ) | - | - | - | - | - | - | - | 1,070 | ||||||||||||||||
| Deferred tax on convertible notes | - | - | - | - | 425 | - | 425 | - | - | - | - | - | - | - | 425 | ||||||||||||||||||
| Exercise of stock options | 10,854,967 | 81,255 | (49,777 | ) | - | - | - | (49,777 | ) | - | - | - | - | - | - | 415 | 31,893 | ||||||||||||||||
| Exercise of warrants | 1,206,561 | 6,887 | - | (320 | ) | - | - | (320 | ) | - | - | - | - | - | - | - | 6,567 | ||||||||||||||||
| Exercise of RSUs | 666,663 | 1,840 | (1,840 | ) | - | - | - | (1,840 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||
| Forfeited options | - | - | (3,419 | ) | - | - | - | (3,419 | ) | - | - | - | - | - | 3,419 | - | - | ||||||||||||||||
| Share-based compensation | - | - | 40,280 | - | - | - | 40,280 | - | - | - | - | - | - | - | 40,280 | ||||||||||||||||||
| Contribution from NCI | - | - | - | - | - | - | - | - | - | - | - | - | - | 5,850 | 5,850 | ||||||||||||||||||
| Change in ownership interests in subsidiaries | - | - | - | - | - | (4 | ) | (4 | ) | - | - | - | - | - | - | 4 | - | ||||||||||||||||
| Australis Capital first tranche private placement | - | 7,800 | - | - | - | - | - | - | - | - | - | - | - | - | 7,800 | ||||||||||||||||||
| Australis Capital non-controlling interest 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 Cash Flows
Six months ended December 31, 2019 and 2018
(Unaudited - Amounts reflected in thousands of Canadian dollars)
| Six months ended December 31, | |||||
| Notes | 2019 | 2018 | |||
| $ | $ | ||||
| Operating activities | |||||
| Net loss for the period | (1,295,528 | ) | (135,461 | ) | |
| Adjustments for non-cash items: | |||||
| Unrealized gain on changes in fair value of biological assets | 7 | (59,616 | ) | (27,663 | ) |
| Changes in fair value included in inventory sold | 41,312 | 31,561 | |||
| Depreciation of property, plant and equipment | 9 | 40,197 | 19,632 | ||
| Amortization of intangible assets | 12 | 21,121 | 22,349 | ||
| Share-based compensation | 44,720 | 40,280 | |||
| Non-cash acquisition costs | - | 2,230 | |||
| Non-cash compensation expense from acquisitions | - | 3,283 | |||
| Impairment of property, plant and equipment | 9 | 51,925 | - | ||
| Impairment of investment in associate | 6 | 46,226 | 69,957 | ||
| Impairment of intangible assets | 12 | 158,695 | - | ||
| Impairment of goodwill | 12 | 762,231 | - | ||
| Accrued interest and accretion expense | 13, 14 | 9,650 | 10,348 | ||
| Interest and other income | - | (63 | ) | ||
| Deferred tax expense (recovery) | (5,038 | ) | (29,286 | ) | |
| Other (expense) income, net | 18 | 41,151 | (109,139 | ) | |
| Foreign exchange loss | 4,708 | 508 | |||
| Changes in non-cash working capital | 19 | (91,369 | ) | (31,488 | ) |
| Net cash used in operating activities | (229,615 | ) | (132,952 | ) | |
| Investing activities | |||||
| Marketable securities, derivatives and convertible debenture investments | 5 | (2,000 | ) | (49,286 | ) |
| Proceeds from disposal of marketable securities | 5 | 84,770 | 35,593 | ||
| Loan receivable | (3,312 | ) | - | ||
| Purchase of property, plant and equipment and intangible assets | 9 | (237,120 | ) | (150,107 | ) |
| Disposal of property, plant and equipment | 2,100 | - | |||
| Acquisition of businesses, net of cash acquired | - | 119,558 | |||
| Payment of contingent consideration | (1,607 | ) | - | ||
| Deposits | (3,902 | ) | (1,497 | ) | |
| Investments in associates | 6 | - | 959 | ||
| Net cash used in investing activities | (161,071 | ) | (44,780 | ) | |
| Financing activities | |||||
| Proceeds from long-term loans | 64,394 | 150,972 | |||
| Repayment of long-term loans | (3,750 | ) | (9,096 | ) | |
| Repayment of short-term loans | - | (2,249 | ) | ||
| Payments of lease liabilities | 14(b) | (6,491 | ) | - | |
| Restricted cash | 1,064 | (28,031 | ) | ||
| Financing fees | (941 | ) | (4,495 | ) | |
| Shares issued for cash, net of share issue costs | 320,779 | 38,446 | |||
| Capital contribution from non-controlling interest | - | 5,854 | |||
| Net cash provided by financing activities | 375,055 | 151,401 | |||
| Effect of foreign exchange on cash and cash equivalents | (762 | ) | (2,439 | ) | |
| Decrease in cash and cash equivalents | (16,393 | ) | (28,770 | ) | |
| Cash and cash equivalents, beginning of period | 172,727 | 76,785 | |||
| Cash and cash equivalents, end of period | 156,334 | 48,015 |
Supplemental cash flow information (Note 19)
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, 2019 and 2018
(Unaudited - Amounts reflected in thousands of Canadian dollars, except share and per share amounts)
Aurora was incorporated under the Business
Corporations Act (British Columbia) on December 21, 2006 as Milk Capital Corp. Effective October 2, 2014,
the Company changed its name to Aurora Cannabis Inc. 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 strategic
business lines are focused on the production, distribution and sale of cannabis and hemp products in Canada and internationally.
Aurora currently conducts the following key business activities in the jurisdictions listed below:
The United States ("U.S.") represents
the largest cannabis and hemp-derived cannabidiols ("CBD") market globally and as such, Aurora continues to evaluate
its alternatives to establishing an operating footprint in the U.S. As part of the U.S. market strategy, we are considering how
various state and federal regulations will affect the Company's business prospects. The Company is committed to only engage
in activities which are permissible under both state and federal laws.
Accounting Policies and Judgments
The condensed consolidated interim financial
statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS")
and International Accounting Standards 34, "Interim Financial Reporting" ("IAS34") as issued by
the International Accounting Standards Board ("IASB"), and interpretations of the IFRS Interpretations Committee ("IFRIC").
Unless otherwise noted, all amounts are presented in thousands of Canadian dollars, except share and per share data.
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(c) and assets held for sale in Note 11. 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, 2019, including the accompanying notes thereto.
For comparative purposes, the Company has
reclassified certain immaterial items on the comparative consolidated statement of financial position and the consolidated statement
of comprehensive loss to conform with current period's presentation.
The condensed consolidated interim financial
statements include the financial results of the Company and its subsidiaries. Subsidiaries include entities which are wholly-owned
as well as entities over which Aurora has the authority or ability to exert power over the investee's financial and/or operating
decisions (i.e. control), which in turn may affect the Company's exposure or rights to the variable returns from the investee.
The condensed consolidated interim financial statements include the operating results of acquired or disposed entities from the
date control is obtained or the date control is lost, respectively. All intercompany balances and transactions are eliminated upon
The Company's principal wholly-owned
subsidiaries are as follows:
| Major subsidiaries | Percentage Ownership | Functional Currency |
| 1769474 Alberta Ltd. ("1769474") | 100% | Canadian Dollar |
| 2105657 Alberta Inc. ("2105657") | 100% | Canadian Dollar |
| Aurora Cannabis Enterprises Inc. ("ACE") | 100% | Canadian Dollar |
| Aurora Deutschland GmbH ("Aurora Deutschland") | 100% | European Euro |
| Aurora Nordic Cannabis A/S ("Aurora Nordic") | 51% | Danish Krone |
| CanniMed Therapeutics Inc. ("CanniMed") | 100% | Canadian Dollar |
| H2 Biopharma Inc. ("H2" or "Aurora Eau") | 100% | Canadian Dollar |
| MedReleaf Corp. ("MedReleaf") | 100% | Canadian Dollar |
| Peloton Pharmaceuticals Inc. ("Peloton" or "Aurora Vie") | 100% | Canadian Dollar |
All shareholdings are of ordinary shares
or other equity. Other subsidiaries, while included in the consolidated financial statements, are not material and have not been
reflected in the table above.
AURORA CANNABIS INC.