Canadian medical cannabis producer Aurora Cannabis Inc. (TSX: ACB) (OTCQB: ACBFF), the 4th largest cannabis producer by market cap, today announced it is increasing its ownership in Cann Group (ASX: CAN) from 19.9% to 22.9% by spending up to CA $25.1 million in Cann’s latest, fully underwritten stock placement priced at approximately CA$2.41. The Placement consists of three stages. The first AUS$50 million institutional stage has been completed, while the third and final stage is anticipated to complete on January 15, 2018.
Cann is Australia’s first company licensed to do research on and cultivate cannabis for medical purposes. The Company currently has two small-scale facilities and has begun working on a 172,000 sq ft expansion. The funds raised will enable Cann to accelerate completion of this facility and ramp up production to meet demand.
Terry Booth, Aurora’s CEO, said the value of Aurora’s initial $6.5 million investment in Cann has already increased ten-fold to $65 million.
Aurora’s Chief Global Business Development Officer, Neil Belot, just joined Cann’s Board in November 2017, strengthening ties between the companies. The investment, services, genetics and consultancy that Aurora is delivering to Cann will accelerate Cann’s development, scientific research, product diversification, and export potential. Cann Group CEO Peter Crock said, “We can now move ahead with full certainty on our phase 3 expansion program, which includes the development of a 16,000m2 greenfield facility, incorporating 9,600m2 of flowering production area.”
Aurora operates a 55,200 sq ft production facility in Alberta known as “Aurora Mountain” and a 40,000 sq ft production facility in Pointe-Claire, Quebec known as “Aurora Vie”. It is constructing an 800,000 sq ft production facility, at the Edmonton International Airport known as “Aurora Sky”. It is also completing a fourth facility in Lachute, Quebec through Aurora Larssen Projects, a subsidiary.
Aurora’s stock closed at US $5.85, up 186% in 3 months from 2.86. The company has a market cap of $2.34b.
Source: Aurora press release