Full Press Release Details
Aurora Cannabis Provides Update on Initiatives
to Strengthen Liquidity, Business Transformation Plan and COVID-19 Operational Response
Strengthened Cash Position with Plans for Additional
Flexibility Given Economic Uncertainty
Execution Against Business Transformation Plan
Continues on Schedule
All Facilities Fully Operational with COVID-19
Precautions in Place to Protect Staff
Announced Intention to Consolidate Common Shares
EDMONTON, April 13, 2020 /CNW/ - Aurora Cannabis
Inc. (the "Company" or "Aurora") (NYSE | TSX: ACB), the Canadian company defining the future
of cannabis worldwide, today provided an update related to its balance sheet flexibility, business transformation initiatives and
COVID-19 operational response plans.
Strengthened Cash Position:
Aurora has provided an update on its liquidity
(Unless otherwise stated, $ in Canadian dollars)
As of March 31, 2020,
the Company had approximately $205 million of cash. This includes all amounts raised under the existing, and now completed, US$400
million At-the-Market Offering program ("ATM"), initially announced in May 2019. Under the ATM, the Company issues
common shares (the "Common Shares") at prevailing market prices without any new issue discounts, warrants or other
dilutive securities; and
To support the strength of the Company's balance sheet
and provide continued access to equity capital, the Company today stated that it intends to file a new prospectus supplement for
a renewed ATM program, to enable Aurora to raise additional equity capital pursuant to its outstanding base shelf prospectus dated
May 14, 2019 under which approximately US$350 million remains available. The Company intends to use a portion of this available
capacity to provide further balance sheet strength and preserve flexibility given macroeconomic uncertainty caused by COVID-19.
Business Transformation Update:
Aurora has provided an update on its business
transformation plan as previously announced in February 2020. The Company stated that:
Aurora remains on track
with its previously announced business transformation targets, including: (1) material selling, general and administrative cost
reductions; (2) significant reductions in capital expenditures; and (3) reducing complexity across the organization;
Aurora today reaffirmed
its previous commentary that fiscal Q3 2020 cannabis net revenue is expected to show modest growth relative to fiscal Q2 2020;
Aurora today announced that its Board of Directors has
approved, subject to required regulatory and stock exchange approvals, a plan to consolidate all of its outstanding Common Shares
on the basis of 1 Common Share for every 12 Common Shares currently outstanding (the "Consolidation"), with such
Consolidation to be effective on or about May 11, 2020. The Company expects the Consolidation to restore compliance with the NYSE's
continued listing standards, and to provide access to a broad universe of investors, access to equity capital and trading liquidity.
Further details regarding the Consolidation can be found below under the heading "Information Regarding the Share Consolidation
"Our focus today continues to be on financial
discipline across the entire organization. We are taking appropriate actions to strengthen our cash position and maintain
financial flexibility as we navigate through the current environment," said Michael Singer, Executive Chairman and Interim
CEO. "As Aurora drives towards generating positive free cash-flow, we are confident that our shareholders will be supportive
of our further actions to solidify our balance sheet and position the Company for success."
COVID-19 Operational Response
The Company has taken responsible measures
to maximize the safety of staff working at all of its facilities. This includes reorganizing physical layouts, adjusting schedules
to improve social distancing, implementing extra health screening measures for employees and applying rigorous standards for personal
protective equipment. Aurora has also introduced a special bonus pay program for active facility-based staff.
All of Aurora's facilities in Canada and internationally
continue to be fully operational and the Company is working closely with local, national and international authorities to ensure
it is following or exceeding the stated guidelines related to COVID-19 within each region.
"The health and well-being of our employees
is of the highest importance and our protective measures have been further enhanced during this time of a global health crisis,"
said Mr. Singer. "We have proactively taken the necessary steps to re-engineer our facility workspaces and provide office-based
employees with 'work from home' arrangements. I am proud of the hard work and commitment of every member of the Aurora team. Through
their efforts, we are able to continue to serve patients and consumers across Canada and around the world under these extraordinary
Information Regarding the Share Consolidation
As discussed above, the Company's Board of
Directors has approved a consolidation of the Company's Common Shares on a 12 to 1 basis. The Consolidation will be effective on
or about May 11, 2020 (the "Effective Date") and on such date the Company expects to begin trading on the New
York Stock Exchange (the "NYSE") and the Toronto Stock Exchange (the "TSX") on a post-Consolidation
basis. The Consolidation and the timing of the Effective Date are subject to the approval of both the NYSE and TSX.
The Company currently has 1,313,494,990 Common
Shares outstanding and, assuming no additional Common Shares are issued prior to the Consolidation, the Consolidation will reduce
the issued and outstanding Common Shares to approximately 109,457,915 Common Shares.
The Company will not be issuing fractional
post-Consolidation Common Shares in connection with the Consolidation. Where the Consolidation would otherwise result in a shareholder
being entitled to a fractional Common Share, the number of post-Consolidation Common Shares issued to such holder of Common Shares
shall be rounded up or down to the nearest whole number of Common Shares.
A letter of transmittal (a "Letter
of Transmittal") with respect to the Consolidation will be mailed to registered shareholders of the Company. All registered
shareholders with physical certificates will be required to send their certificates representing pre-Consolidation Common Shares
along with a completed Letter of Transmittal to the Company's transfer agent, Computershare Trust Company of Canada ("Computershare"),
in accordance with the instructions provided in the Letter of Transmittal. Additional copies of the Letter of Transmittal can be
obtained through Computershare. All shareholders who submit a duly completed Letter of Transmittal along with their pre-Consolidation
Common Share certificate(s) to Computershare will receive a post-Consolidation Common Share certificate. Shareholders who hold
their Common Shares through a broker or other intermediary and do not have Common Shares registered in their name will not need
to complete a Letter of Transmittal.
The exercise or conversion price and the number
of Common Shares issuable under any of the Company's outstanding warrants, convertible debentures, stock options and securities
convertible in Common Shares will be proportionately adjusted to reflect the Consolidation in accordance with the respective terms
On April 8, 2020, the Company received notification
from the NYSE that, as a result of its Common Share price falling below an average of US$1.00 for a consecutive 30 trading-day
period, it is not in compliance with one of the NYSE's continued listing standards. The Company's Consolidation plan above is in
response to this notification received. The Company expects the Consolidation to restore compliance with the NYSE's continued listing
standards, and to continue to provide access to a broad universe of investors, access to equity capital and trading liquidity.
Non-compliance with the NYSE's price listing standard does not affect the Company's business operations or its reporting requirements
to any regulatory authorities, nor does it breach or cause an event of default under any of the Company's agreements with its lenders.
In addition, non-compliance with the NYSE price listing standard does not affect the continued listing and trading of the Common
This press release shall not constitute an
offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of Company securities in any jurisdiction
in which an offer, solicitation or sale would be unlawful prior to further registrations or qualifications under the securities
laws of any such jurisdiction. Any public offering of securities to be made in the United States will be made by means of a prospectus
that may be obtained at such time from the Company and that will contain detailed information about the Company and management,
as well as financial statements.
Aurora is a global leader in the cannabis industry
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 brand portfolio includes Aurora, Aurora Drift, San Rafael '71, Daily Special,