VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 21, 2015) - Aurora Cannabis Inc. (CSE:ACB)(FRANKFURT:21P)(WKN:A1C4WM)(OTC:PSNTF) ("Aurora" or the "Company") through its wholly-owned subsidiary, Australis Capital Inc. ("ACI"), is pleased to announce that it has entered into a Partnership Agreement dated April 7, 2015, with AJR Builders Group, LLC ("AJR") of Bellingham, Washington, to form a limited liability partnership named, Australis Holdings, LLP ("Australis") to construct a new marijuana production and processing facility in the State of Washington.
Highlights:
- Partnership agreement with Australis
- Construct new Marijuana Production & Processing Facility
- Bakerview Business Borough catering to the Cannabis industry in Washington
- Aurora to provide training, quality control, operation manuals and technical support for a number of turnkey production facilities.
- Operations in the state of Washington will facilitate expansion plans to serve recreational and medical marijuana markets in other US states.
Australis has recently acquired two (2) parcels of land totaling 24.5 acres in Whatcom County, WA in an area designated as the Bakerview Business Borough. The intention of Australis is to develop and construct a new marijuana production and processing facility utilizing the skills and experience of AJR. AJR has experience and a proven track record in developing facilities ideal for growing marijuana. The business park is situated in an I-502 approved area for recreational and medical marijuana businesses. The joint venture between ACI and AJR gives Australis exclusive development rights to develop a marijuana production and processing facility.
Located in the heart of Bellingham's light industrial submarkets, the Bakerview Business Borough will be the largest, fully entitled, industrial development catering to the cannabis industry in Washington. When fully built out, the business park represents an opportunity of over a million square feet of production, processing and retail space. The area includes a dedicated space for a flagship processing facility for Australis that will further the "Aurora Standard". Plans are currently in place for a sports bar, several restaurants, a rock climbing facility, a local microbrewery and craft distillery, and marijuana industry related supply stores. Multiple undisclosed celebrity brands of cannabis will be produced in the park along with a celebrity branded Vapor lounge. Each production facility space will offer a turnkey solution and I-502 licensees that lease these facility spaces will benefit from being able to grow in accordance with the renowned Aurora Standard - a production model synthesized from Canada's global-leading health & safety standards along with experience from Aurora's curated cannabis advisory team. Aurora will provide training in cultivation to ensure sanitary conditions and products (whole bud or extracts) are competitive quality-wise in any market, standard operating procedures and cutting edge technical support to the producers as part of a turnkey package. With an existing 12,500 sq. ft. warehouse and utilities on site, the first production warehouse will be available for occupancy in the summer of 2015, while work is conducted on the engineering and infrastructure for the remaining site.
Australis will organize tours of the production facilities by way of specific viewing areas, making this not only a multifaceted cannabis community but also an educational, exciting destination spot experience for tourists and locals. Nestled at the base of Mount Baker, the Bellingham area saw tourists spend $573.9 million dollars in 2013, many of whom are Canadians. Only 40 minutes from Vancouver and 90 minutes from Seattle, the Bakerview Business Borough is in a prime location to attract a high number of cannabis enthusiasts, and those curious about cannabis from both major cities. Tenants will be five minutes from Bellingham International Airport and 10 minutes from downtown. The port of Seattle is 90 miles south and a new deep-water port is being constructed just 30 miles away. Follow this link to view a video of the property: https://vimeo.com/112839760 (The password is "Mary").
"We are looking forward to leveraging Aurora's knowledge and cutting edge science to capitalize on Washington States recreational and medical marijuana markets," said Jason Ragsdale, managing director of AJR Builder's Group. "The planned project includes a state of the art processing facility and a variety of grow options including Hoop Houses, high-tech green houses and efficient indoor production facilities. These production facilities will be leased to serious 502 license holders under a turnkey situation. All producers will be expected to uphold the Aurora Standard as it pertains to the recreational and medical markets in Washington. ACI will provide the necessary resources to ensure that standard is being followed thus furthering their brand and reputation. Many license holders see the need for this type of partnership, the concept of multiple cannabis producers and processors in one location will give our partnership the ability to cultivate the highest quality strains of cannabis. We can start generating revenues within 90 days."
"We believe that the advancement of our operations in the State of Washington will facilitate the Company's strategic growth and expansion plans to serve the growing recreational marijuana market south of the border. Jurisdictions in the United States that we are presently focused on include Alaska, Oregon, Washington, Colorado, and Washington D.C. Nevada and California are also being looked at very closely as both states have recreational marijuana bills on their ballots for 2016," commented Terry Booth, CEO of Aurora.
Washington Initiative 502 (I-502) for the legalization of recreational marijuana and marijuana related products for adults 21 and over appeared on the general ballot in November 2012. The initiative passed with a significant percentage of the vote, and was credited with producing the highest voter turnout in the nation at an astounding 81%. The result of I-502's successful ratification has been a new and flourishing industry for every aspect of marijuana cultivation, extraction, processing, packaging, and sales. The recently passed Senate Bill 6062 changes end users' tax from 75% to 37%. Another bill passed by Washington legislature, SB 5052, will overhaul the states medical marijuana market. SB 5052 will eliminate the allowance of up to 300 unregulated dispensaries that have operated in the state for years. This bill will cause many consumers to move to the new regulated recreational market and will also raise the standard of quality in the medical market. Significant positive changes in the regulation of recreational and medical marijuana continue to occur at the time of this acquisition.
The 24.5 acres of land were purchased for a price of USD $2.3 million. ACI has provided an initial funding of approximately CAD $1.6 million by way of a secured loan to Australis.
Subject to shareholder approval the Company intends to spin out ACI under a Plan of Arrangement under the Business Corporations Act (British Columbia) (the "Arrangement"), pursuant to which shares of ACI will be distributed to the holders of common shares of Aurora on a pro-rata basis. The directors of the Company believe that the creation of two separate public companies, one focused in Canada and one focused in the U.S. and international markets will enhance their respective business operations and provide shareholders of Aurora with diversified investment choices. The Company will announce the details of the Arrangement in due course. There can be no assurances or guarantees that the Arrangement will be completed or approved by the exchange.
About Aurora Cannabis Inc.
Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical marijuana pursuant to the Marihuana for Medical Purposes Regulations and operates a 55,200 square foot expandable state-of-the-art production facility in Alberta, Canada. Aurora's wholly-owned subsidiary, Australis Capital Inc., seeks to be an active participant in the U.S. Cannabis market. Our consultant, Electrum Partners, LLP, in Nevada, our partner, AJR Builders Group, LLC, in Washington State and our 50% owned subsidiary, Australis Holdings LLP, are the first key steps in executing our growth strategy south of the Canadian border. Aurora is trading on the Canadian Securities Exchange under the trading symbol "ACB".
On behalf of the Board of Directors, AURORA CANNABIS INC.
Terry Booth, CEO
This news release contains statements about the Company's expectations regarding the Australis partnership, the Bakerview Business Borough, the proposed spin out of ACI, and the resulting business of Australis that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. Such factors include but are not limited to the Company's ability to raise sufficient capital and the general impact of financial market conditions; changes in prices of required commodities; changes in the investment and expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which the Company and Australis operate. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. We seek Safe Harbor.