Aurora Cannabis - The Green Fund
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Aurora Cannabis
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
• Differentiated Products
• 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, low- energy 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 Capacity and Production Expansion • On the 24th January 2018, Aurora and CanniMed • Aurora continues to expand its domestic and Therapeutics announced that the companies had international production footprint with a growing finally agreed (after many months of hostile number of high-technology, purpose built, low negotiations) to an offer for the purchase of production cost, high yield facilities CanniMed. • The company owns facilities expected to exceed • It is anticipated that the transaction will be 240,000kg of high quality cannabis per year materially completed in March 2018The • Aurora also has long term supply agreements combination with CanniMed would add in excess of expected to provide a further 23,000kg of high • 20,000 patients quality organic cannabis per year • 19,000kg production per annum • Total current – fully funded – capacity is expected • New drug technologies, and to exceed 270,000kg annually • High margin cannabis products
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 licenseAustralia - 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 cannabisfacilities
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 facilityProducts
Dried Flower Cannabis Oils
Aurora Envoy Hempco
Thor
• Most popular product: THOR • THC %: < 1% – 32% (Highest reported) • 0 Pesticides and gamma-irradiation
• 24 Strains used for both flower and oils • CBD %: < 0.5% – 24% (Highest • $8 Per Gram; $5 / Gram Low
• 10+ Flagship strains reported) Income Pricing
• Types: Indica, Sativa, Hybird, Blend • Oils now availablemanagement team
Terry Booth – CEO & Founder Steve Dobler, P. Eng – President Allan Cleiren – COO
Terry founded Aurora in 2013 when Steve Dobler began his distinguished Mr. Cleiren has nearly three decades of
Health Canada announced the creation career in 1990 upon obtaining his leadership experience in finance and
of the new MMPR program. Investing Professional Engineering designation operations management with both
$2.5 million of his own capital in start-up from the University of Alberta. Steve has privately and publicly held companies in
funding Terry secured a 100 + acre parcel held numerous executive positions in the life sciences, insurance, rail,
of land and began designing and successful private and public Canadian construction, oil and gas service, and
building Aurora’s state of the art companies over the past 25 years where other sectors..
marijuana cultivation facility in Canada. he was responsible for the
implementation of project management, Most recently, Mr. Cleiren was COO with
Terry was instrumental in submitting strategies, and overseeing all facets of Jardine Lloyd Thompson Canada Inc.
and obtaining a Health Canada License various operations. (JLT), one of the world’s leading
to Produce Medical Marijuana for Aurora. providers of insurance, reinsurance and
Terry oversee’s the corporate strategy of Currently serving as President for employee benefits related advice,
the company including operations, Alberta’s largest safety codes permitting brokerage and associated services.
sales, patient acquisition, doctor company, his focus is on customers,
education programs, genetics innovation, and improved operational Prior to joining JLT, he served as
development, regulatory affairs, facility efficiencies which directly led to Executive Vice President and formerly
expansion as well as the daily significant company growth. In 2011, the CFO for Universal Rail Systems Inc, and
requirements of communicating with company was included in the top 50 of as Senior Vice President of Operations
local and foreign capital markets and Canada’s fastest growing companies. and CFO for Afexa Life Sciences.
investors.And they told you money
doesn’t grow on trees
thegreenfund.comYou can also read
