Aurora Cannabis arranges new bridge loans2015-04-10 13:14 ET - News Release Mr. Terry Booth reports AURORA RETRACTS PRESS RELEASE ISSUED ON APRIL 2, 2015 AND ANNOUNCES $3.5 MILLION IN BRIDGE LOANS Aurora Cannabis Inc.'s press release dated April 2, 2015, regarding the closing of a $3.5-million bridge loan facility with Century Services Inc. was issued prematurely. The company has subsequently secured bridge financing from other parties. The company apologizes for this error and any confusion it may cause. The bridge financing is in place while the company explores longer-term financing options to support and expand the business. Jacob Securities Inc. (JSI) has been engaged to explore these longer-term solutions. JSI is a leading investment bank in the cannabis space in North America and has completed over 15 transactions over the previous 12 months, including work with multiple MMPR (Marihuana for Medical Purposes Regulations) licenceholders. Secured bridge loan facility The company closed a $1-million secured bridge loan facility with an arm's-length party. The term of the facility is nine months with a minimum three-month term and bears interest at 1.65 per cent per month. Interest is payable monthly, and the principal amount is due at the end of the term. There are no penalties if the loan is paid out after three months. The facility is secured by the assets of the company and its subsidiaries pursuant to general security agreements, a leasehold mortgage on land leased by the company's subsidiary, and corporate guarantees by the company's subsidiaries. The company shall pay a facility fee of 4 per cent of the principal amount. The proceeds of the facility shall be used for capital investments. Unsecured bridge loan The company received a total of $2.5-million under a term loan facility from companies controlled by Terry Booth, chief executive officer, and Steve Dobler, president of the company. The bridge loan is unsecured, bears interest at 8 per cent per year and matures on Oct. 1, 2015. There is no minimum term. The bridge loan serves as interim financing to support the working capital requirements of Aurora. Mr. Booth stated: "Aurora is pleased to complete these short-term bridge financings while we negotiate terms that better serve the big picture. The company chose a debt facility versus an equity facility because, at this time, we believe the company is significantly undervalued when compared to our competition. It is our job now to inform the markets about the Aurora standard and to back that standard with high-quality production, stellar execution and superb customer satisfaction in each and every facet of our operations. We look forward to that challenge and have prepared our strategic entry into the emerging cannabis market accordingly." Mr. Booth and Mr. Dobler are insiders and majority and controlling shareholders of the company. Accordingly, the bridge loan is considered a related party transaction under Multilateral Instrument 61-101, Protection of Minority Securityholders in Special Transactions. The company will be exempt from the requirements to obtain a formal valuation in connection with the bridge loan, pursuant to sections 5.5(a) and 5.5(b) of MI 61-101, as: (i) the proceeds of the bridge loan does not exceed 25 per cent of the company's market capitalization; and (ii) the common shares of the company are listed only on the Canadian Securities Exchange. As well, the bridge loan is exempt from the minority approval requirements of MI 61-101, as: (i) the bridge loan was made on reasonable commercial terms that are not less advantageous to Aurora than if it were obtained from a person dealing at arm's length with Aurora; and (ii) neither the bridge loan nor the principal and interest payable thereunder are convertible, directly or indirectly, into equity or voting securities of Aurora. The company did not file a material change report more than 21 days before the closing of the bridge loan as required by MI 61-101 as the company required the funds immediately for operations and the terms of the bridge loan were only finalized recently. We seek Safe Harbor.