BZAM Ltd BZAMF

RE:TGOD / AURORA RELATIONSHIP

[butchart869]

I dont usually post but see below

In connection with the Aurora investment in the Company, TGOD entered into a cannabis supply agreement (the “Cannabis Supply Agreement”) with Aurora Cannabis Enterprises Inc. (“ACE”) dated January 4, 2018 whereby TGOD has agreed to sell dried cannabis flower product and trim product (extractable plant matter) to ACE in such volume based on the fully-diluted percentage ownership of the Company held by Aurora. The term of the Cannabis Supply Agreement is determined upon the percentage interest Aurora has in the Company. While Aurora holds a 10% interest in the Company, the Cannabis Supply Agreement shall run for a period of 20 years from the date the Company is licensed by Health Canada to sell cannabis at both the Hamilton Facility and the Qubec Facility. If Aurora owns a 5% to 10% ownership in the Company, the term will be two years from the date of grant of such licenses, and if less than 5% is owned, the Cannabis Supply Agreement will terminate. See “Material Contracts”. ACE will identify which strains of cannabis it intends to purchase from TGOD and will have the opportunity to purchase a minimum of 20% of the dried flowers and 20% of the trim produced at the Hamilton Facility and the Qubec Facility per year at certain set prices (based on agreed formulas), subject to a minimum ownership requirement of Aurora in the Company. TGOD has also granted ACE a right of first offer for any surplus inventory. The Cannabis Supply Agreement sets out expected ACE standards for material to be purchased and allows for representatives of ACE to inspect the material and facilities.