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Aurora Cannabis Inc T.ACB

Alternate Symbol(s):  T.ACB.WS.U | ACB

Aurora Cannabis Inc. is a Canada-based medical cannabis company. The Company’s principal business lines are focused on the production, distribution and sale of cannabis and cannabis-derivative products in Canada and internationally, and the propagation of vegetables and ornamental plants in North America. Its segments include Canadian Cannabis and Plant Propagation. The Company's adult-use brand portfolio includes Drift, San Rafael '71, Daily Special, Tasty's, Being and Greybeard. Its medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co, as well as international brands, Pedanios, Bidiol, IndiMed and CraftPlant. It also has a controlling interest in Bevo Farms Ltd., North America's supplier of propagated vegetables and ornamental plants in North America. Its subsidiaries include Aurora Cannabis Enterprises Inc., Aurora Deutschland GmbH, TerraFarma Inc., Whistler Medical Marijuana Corporation, and Indica Industries Pty Ltd., among others.


TSX:ACB - Post by User

Bullboard Posts
Post by dro2017on Jun 21, 2018 5:35pm
421 Views
Post# 28209058

Australis and why we should vote for this.

Australis and why we should vote for this.I just finished reading an article about it, and surprisingly it's from Motely fool. Now people don't like them and I'm personally not a fan for all the bashing. However, the following information is very useful and it does give us a clarification of what's going. Enjoy. What Aurora Cannabis plans to do On June 20, Aurora Cannabis announced plans to spin off its subsidiary, Australis Capital, as a separate entity to be listed on the Canadian Securities Exchange (CSE). Heres the real deal: the press release stated that Australis intends to acquire ownership interests in a variety of opportunities and asset classes, primarily in the cannabis and real estate sectors in the United States. Clearly, Aurora is targeting the U.S. marijuana markets through Australis. In fact, Auroras press release stated how the fragmented U.S. marijuana market cannabis is an illegal Schedule 1 substance at federal level in the U.S., but medical marijuana is legal in 29 states presents a compelling opportunity for well-connected and capitalized companies to invest in U.S. assets. Read between the lines, and its easy to understand Auroras plans: it will spin off its U.S. assets into a separate company and not list it on the TSX. By doing so, Aurora will be able to access and expand in the high-potential U.S. marijuana market while adhering to regulatory requirements. Its a smartly structured deal that should benefit shareholders, as I explain below. A bit about Auroras U.S. assets Without going into the technicalities, Id like to highlight two points about the deal. First, Australis has 50% stake in a joint venture which purchased 24.5 acres of land in Washington in 2015 to set up cannabis production facilities. Those plans were put on ice, but once Australis should now be able to monetize the land and proceed with the facility. Two, as part of its acquisition of CanniMed Therapeutics earlier this year, Aurora acquired stake in SubTerra, a plant-based pharmaceutical manufacturer. SubTerra currently doesnt deal in cannabis but recently applied for a licence to the State of Michigan to research, produce, and process medical cannabis. Australis will now own this stake in SubTerra. As an Aurora Cannabis shareholder, heres how you stand to benefit. What Aurora Cannabis shareholders will get The deal is structured as such that every Aurora Cannabis shareholder will get one share and one share warrant in Australis for every 20 shares held in Aurora for no extra cost. Each warrant will further entitle shareholders to buy one Australis share for $0.25 one year after the distribution. Non-Canadian resident shareholders of Aurora will get cash instead of shares in Australis. For example, lets say you own 200 shares in Aurora Cannabis. You will get 10 shares of Australis and 10 warrants on the date of distribution. After a year, you can exercise those 10 warrants to purchase 10 additional shares of Australis for $0.25 each, regardless of its then share price. In other words, as an Aurora shareholder, youd become a shareholder in Australis as well as soon the company goes public.
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