Aurora Cannabis Inc. (TSX: ACB) (OTCQB: ACBFF) today announced that, further to its press releases of November 23, 2017, the Company has completed the acquisitions of Larssen Ltd, a globally leading greenhouse engineering and design consultancy, and that of H2 Biopharma, a late-stage ACMPR applicant based in Quebec.
Larssen has set the industry standard in high-tech, automated, environmentally controlled greenhouses for over 30 years, has consulted on the design, engineering, and construction oversight of many of the world’s most advanced greenhouse cultivation facilities, having been involved with over 1,000 projects around the globe. Larssen currently is involved in 15 cannabis projects, five of which are with Canadian Licensed Producers.
H2 is currently completing a state-of-the-art, purpose-built 48,000 square foot cannabis production facility (the “Lachute facility”), less than an hour from Montreal, which, upon completion, is projected to produce approximately 4,500 kilograms of high-quality cannabis per annum, with significant expansion potential on 46 acres (19 hectares) of land, which H2 has the right to acquire for $136,000. Aurora Larssen Projects Ltd. (“ALPS”), which was recently incorporated as Aurora’s greenhouse design and consulting arm, will play an important role in the completion of this newest Aurora facility to EU GMP standards.
“These are two important acquisitions for Aurora that clearly show how our growing constellation of trusted partners and subsidiaries accelerate shareholder value creation through strategic synergies,” said Terry Booth, CEO. “Larssen’s pedigree in designing the world’s most technologically advanced and efficient greenhouses will be leveraged for the completion of our new Lachute Facility. The addition of this latest facility will increase our capacity to serve the domestic and export markets, and signals our major commitment to operations in Quebec, Canada’s second most populous province.”
Tracking for $6 million in fiscal 2018 revenues, the Larssen transaction will be immediately accretive. Completion of the H2 facility is anticipated for early calendar 2018 with production, and therefore additional revenues, anticipated shortly thereafter.
In consideration of the H2 acquisition, Aurora has issued 4,789,273 common shares of Aurora to the H2 vendors, at a price of $5.22 per share, based on 90% of the VWAP of the Aurora common shares for the 5 days immediately prior to signing of the share purchase agreement. Of these shares, 1,728,718 are released to the H2 vendors immediately, and the remaining shares have been put into escrow and are subject to release to the H2 vendors or cancellation, based on the achievement of certain operational milestones.
Source: Technical 420