June 18, 2018 - 7:00 AM EDT
Aurora Cannabis Closes Strategic Investment in Choom Holdings
Canada NewsWire
EDMONTON, June 18, 2018
Exposure to Unique Canadian Craft Cultivator and Retail Operator
TSX: ACB
EDMONTON, June 18, 2018 /CNW/ - Aurora Cannabis Inc. ("Aurora" or the "Company") (TSX: ACB) (OTCQB: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) announced today that it has closed its previously announced $7 million investment in Choom Holdings Inc. ("Choom"), whereby Aurora received 9,859,155 common shares from Choom's treasury, priced at $0.71 per share, representing a 6% ownership interest. In total, Choom issued 14,225,352 shares for total gross proceeds of $10.1 million. All securities issued are subject to a four month hold period.
Since the announcement of the private placement, Choom closed its previously announced acquisition of Specialty Medijuana Products Inc. ("SMP"). SMP recently completed construction of its 10,000 square foot Sooke, British Columbia facility and expects to receive its cultivation license from Health Canada in the third quarter of 2018. In addition, SMP intends to expand production capacity by and additional 19,600 square feet at the Sooke facility, bringing the total capacity to 29,600 square feet. SMP has also submitted plans to construct two separate hybrid greenhouse facilities on the grounds of the Sooke Facility, which when completed would bring total production capacity to over 700,000 square feet.
Management Commentary
"This strategic investment positions Aurora to participate in the emerging craft cultivation market, as well as in an exciting Western Canada retail strategy with a seasoned team of executives," said Terry Booth, CEO of Aurora. "Choom's product cultivation strategy puts the cultivar first, developing a high-grade offering with unique flavour profiles, which are anticipated to resonate strongly with the adult-use consumer market, once legalized. We're pleased to close our investment in Choom, and look forward to building a strong, long-term relationship with the team."
Chris Bogart, President & CEO for Choom, added, "The financing provides us with the funds to accelerate the execution of our unique retail strategy moving forward. We are now well positioned to expand our production and retail footprint, and pursue further opportunities across Canada."
