Aurora Cannabis Inc

Headquartered in Edmonton, Alberta, with funded capacity in excess of 570,000 kg per year and sales and operations in 14 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution. Highly differentiated from its peers, Aurora has established a uniquely advanced, consistent and efficient production strategy, based on purpose-built facilities that integrate leading-edge technologies across all processes, defined by extensive automation and customisation, resulting in the massive scale production of high quality product at ultra-low costs.

Intended to be replicable and scalable globally, these production facilities are designed to produce cannabis of significant scale, with high quality, industry-leading yields, and ultra-low per gram production costs. Each of Aurora’s facilities is built to meet European Union (EU) GMP standards, and both its first production facility and its wholly owned European medical cannabis distributor Pedanios have achieved this level of certification. In addition to the Company’s rapid organic growth and strong execution on strategic M&A, which to date includes nine companies acquired – CanvasRX, Peloton Pharmaceutical, Pedanios, H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen, CanniMed Therapeutics, Anandia Labs and MedReleaf – Aurora is distinguished by its reputation as a partner of choice and employer of choice in the global cannabis sector, having invested in and established strategic partnerships with a range of leading innovators

Investor Presentation

LP

Manuf.

Medi.

R&D

overview

Overview

Aurora is one of more than 50 Licensed Producers with the highest, approved, square footage production capacity in Canada. Aurora is exceptionally well positioned to capitalise on the global cannabis opportunity (which according to VIII Capital is expected to be north of $100bn in 10 years’ time).

It is also one of three located in Alberta – which is also of significance. Located in rural Alberta means there is no cost for the fresh mountain-fed water used in the facility, and operations take place under the lowest corporate tax rates and power rates in the Canada. There is also an abundance of Alberta farm credit programs available to Aurora and a number of Albertan Innovation programs.

With over 23,000 registered patients, over $11m in revenue, and the largest revenue producer in Germany, its focussed strategy is aimed at capitalising on vertical and horizontal integration both domestically and internationally.

A vertically integrated giant, it currently sits as one of the top 3 companies primed to take advantage of the global cannabis opportunity.

Highlights

Customer experience – The Aurora Standard

  • 24/7 client care support
  • Same day-delivery and weekend courier
  • The only LP with a mobile app for purchasing medical cannabis
  • Partnerships
    • Radient Technologies
      • Joint development of superior, proprietary oil extraction process
      • Faster, more efficient and higher throughput
    • Namaste MD
      • Exclusive white label use for CanvasRx
    • Micron Waste Technologies
      • Low cost, environmentally friendly treatment of organic waste
    • CannaRoyalty
      • Access to various drug delivery technologies
    • International Expansion
      • 19.9% ownership of Cann Group in Australia and
      • 100% ownership of German distributor Pedanios
  • Quebec expansion with acquisition of Peloton, now licensed as Aurora Vie
  • BC Northern Lights and Urban Cultivator acquisitions
  • Proprietary systems for the indoor cultivation of cannabis
  • Strengthened its Balance Sheet with over $316m in new financings via two private placements

Differentiators

  • Both vertically and horizontally integrated. One of the every few with this unique advantage
  • Purpose-built facility located on a low-cost, lowenergy leased property with access to free water and room for expansion capable of serving 21,000 patients
  • Developing state-of-the-art 800K sq. ft. fully automated greenhouse “Aurora Sky” to be built in Alberta, Canada.
  • When completed, it is estimated to be capable of producing 100,000kg per year
  • Only LP with tissue micro-propagation lab
  • Ownership of CanvasRx, the largest operator of cannabis clinics in Canada
  • Same-day delivery in Alberta and innovative mobile ordering app

Accelerated Growth

The CanniMed transaction

  • On the 24th January 2018, Aurora and CanniMed Therapeutics announced that the companies had finally agreed (after many months of hostile
    negotiations) to an offer for the purchase of CanniMed.
  • It is anticipated that the transaction will be materially completed in March 2018The combination with CanniMed would add in excess of
  • 20,000 patients
  • 19,000kg production per annum
  • New drug technologies, and
  • High margin cannabis products

Capacity and Production Expansion

  • Aurora continues to expand its domestic and international production footprint with a growing number of high-technology, purpose built, low
    production cost, high yield facilities
  • The company owns facilities expected to exceed 240,000kg of high quality cannabis per year
  • Aurora also has long term supply agreements expected to provide a further 23,000kg of high quality organic cannabis per year
  • Total current – fully funded – capacity is expected to exceed 270,000kg annually

Execution to date

growth

Growth to be achieved through

  • Revenue, grams sold and number of patients have all increased in the last year, while costs per gram for production and marketing have all continued to decrease. Aurora has increased the price per gram, indicating that their profit margins have become more attractive.
  • Their strategic acquisitions will provide future earnings as they have subsidiaries that are skilled in various aspects of plant production. This will aid the company in continuing efficient production.
  • Acquisitions overseas will also provide a revenue boost, as they now own one of the largest Cannabis distributors in the EU, and one of the only producers in Australia.
  • Strategic new facilities in Edmonton, Alberta and Pointe-Claire, Quebec will allow for increased and efficient production in the future, to help combat the demand that will occur during increased market awareness and the legalisation in Canada. Aurora’s cannabis application for mobile phones is also an indication of their desire to develop technologically.

Domestic Growth

The Green Organic Dutchman – Premium organic product

  • Aurora to own 17.62% with an option to increase that stake to >50%
  • The supply agreement provides access to 20% of output from the two facilities in Ancaster and Valleyfield
  • This adds over 20,000kg per annum in premium organic cannabis to the Aurora Portfolio

Germany - Pedanois

Aurora announced that its subsidiary Pedanios GmbH has successfully passed the first stage of the application process to become a licensed producer of medical cannabis in Germany.

Keep in mind that Germany could be the second largest area for medical marijuana in the world. With a population of more than 80 million, Germany is expected to become a huge market for medical cannabis. Germany is also the first county in the world to cover the cost of medical cannabis – for any therapeutic application approved by a physician – through its national health insurance system.

  • Largest medical cannabis distributor in EU
  • EU GMP certified for import, release and distribution of cannabis
  • Currently servicing >2,000 pharmacies in Germany (exclusive suppliers of patients)
  • Access to single largest federally legalised medical cannabis market with population > 82 million
  • Broad insurance coverage for prescribed medical cannabis
  • Limited number of EU GMP certified international producers currently serving the German market
  • Cornerstone acquisition for European expansion strategy
  • In phase 2 of tender process for German cultivation license

Australia - Cann Group

With over 24 million people in Australia, and the government recently legalising medicinal marijuana, Australia is a market with significant growth potential. This is before one considers the climate and growing conditions – ripe for the successful harvesting of premium grade cannabis. As it has with its fruit, Australia aims to one day become one of the largest suppliers of high quality, premium grade marijuana to the global medicinal and recreational markets. 22.9% stake for $6.6 million (initial investment at AUS $0.30/ share)

  • Technical Services Agreement in place
  • Possession of one of the first two Licenses issued in Australia
  • Cultivation, Sales, and R&D licenses
  • 3 facilities contemplated
  • First harvest completed

EU - Aurora Nordic

Alfred Pederson is recognised as one of Denmark’s leading entrepreneurial ventures, and provides the perfect platform upon which to gain access to the wider EU market. A market estimated at more than 400 million people. A market bigger than the US. The first mover advantage into this market is worth billions of dollars to the bottom line in the coming 10 years. Aurora Nordic: 51/49 JV with Alfred Pedersen, one of Europe’s largest greenhouse growers of vegetables (>100,000 kg per day)

  • Licensed to produce as of Jan 1, 2018
  • To construct ALPS-designed high technology facility
  • At 1,000,000 sqft, this will be largest cannabis facility in Europe
  • Focused on Nordic countries and export to rest of EU through Pedanios
  • Built to EU GMP standards for export
  • Prior to facility being completed, JV has access to temporary greenhouse space for cultivation of cannabis

facilities

Aurora Mountain

Aurora Sky

  • World leading design & supply partners
  • First bays ready for planting
  • Highest-yielding greenhouse per kWh of energy consumed
  • World’s first facility located at international airport
  • Estimated capital cost $120 million
  • At full capacity, Aurora Sky is estimated to produce over 100,000 kg per year

Aurora Vie & Lachute Quebec

  • Acquired Peloton Pharmaceuticals for $7 million
  • 40,000 square foot facility completed and first planting commenced November 2017
  • Completed build-out and received license in November 2017, reflecting unparalleled execution in sector
  • Provides direct access to Quebec market
  • Provides operations base to target, and shortens supply lines to serve, Atlantic Provinces
  • Delivers additional supply
  • Certain technologies proposed for Aurora Sky to be tested at Pointe-Claire facility

Products

Dried Flower

Cannabis Oils

Aurora Envoy

Hempco

Thor

  • Most popular product: THOR
  • 24 Strains used for both flower and oils
  • 10+ Flagship strains
  • THC %: < 1% – 32% (Highest reported)
  • CBD %: < 0.5% – 24% (Highest reported)
  • Types: Indica, Sativa, Hybird, Blend
  • 0 Pesticides and gamma-irradiation
  • $8 Per Gram; $5 / Gram Low Income Pricing
  • Oils now available

management team

Terry Booth – CEO & Founder

Terry founded Aurora in 2013 when Health Canada announced the creation of the new MMPR program. Investing $2.5 million of his own capital in start-up funding Terry secured a 100 + acre parcel of land and began designing and building Aurora’s state of the art marijuana cultivation facility in Canada.

Terry was instrumental in submitting and obtaining a Health Canada License to Produce Medical Marijuana for Aurora. Terry oversee’s the corporate strategy of the company including operations, sales, patient acquisition, doctor education programs, genetics development, regulatory affairs, facility expansion as well as the daily requirements of communicating with local and foreign capital markets and
investors.

Steve Dobler, P. Eng – President

Steve Dobler began his distinguished career in 1990 upon obtaining his Professional Engineering designation from the University of Alberta. Steve has held numerous executive positions in successful private and public Canadian companies over the past 25 years where he was responsible for the implementation of project management, strategies, and overseeing all facets of various operations.

Currently serving as President for Alberta’s largest safety codes permitting company, his focus is on customers, innovation, and improved operational efficiencies which directly led to significant company growth. In 2011, the company was included in the top 50 of Canada’s fastest growing companies.

Allan Cleiren – COO

Mr. Cleiren has nearly three decades of leadership experience in finance and operations management with both privately and publicly held companies in the life sciences, insurance, rail, construction, oil and gas service, and other sectors..

Most recently, Mr. Cleiren was COO with Jardine Lloyd Thompson Canada Inc. (JLT), one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services.

Prior to joining JLT, he served as Executive Vice President and formerly CFO for Universal Rail Systems Inc, and as Senior Vice President of Operations and CFO for Afexa Life Sciences.