Aurora Announces Distribution Partnership Between MedReleaf Australia and The Entourage Effect

Rhea-AI Summary

Aurora Cannabis Inc. (NASDAQ: ACB) has announced a distribution partnership between MedReleaf Australia and The Entourage Effect to expand access to premium medical cannabis products in Australia. The Entourage Effect will serve as a wholesaler for MedReleaf Australia's portfolio, including CraftPlant, Aurora, and IndiMed brands.

The partnership aims to strengthen Aurora's distribution network in Australia through MedReleaf Australia, its wholly-owned subsidiary that meets TGA-GMP standards. This collaboration represents Aurora's commitment to expanding its presence in the growing Australian medical cannabis market while ensuring broader access to their medical cannabis portfolio.

Positive

• Expansion of distribution network in Australian medical cannabis market
• Partnership with established distributor enhances market access
• Leverages wholly-owned subsidiary MedReleaf Australia's TGA-GMP compliance

Negative

• None.

Insights

Market Research Analyst

This distribution partnership, while expanding Aurora's reach in Australia, represents a relatively minor operational development that's unlikely to materially impact ACB's financial performance in the near term. The Australian medical cannabis market, though growing, remains small compared to Aurora's primary markets. With Aurora's current market cap of $236M, this partnership is more about maintaining market presence than driving significant revenue growth.

The Australian medical cannabis market is experiencing steady growth but faces regulatory complexities and market fragmentation. While The Entourage Effect's distribution network could improve product accessibility, the impact on Aurora's bottom line will likely be gradual and modest. This partnership represents an incremental step in Aurora's international strategy rather than a game-changing development.

NASDAQ | TSX: ACB

The collaboration aims to broaden access of premium medical cannabis products to Australian patients

EDMONTON, AB, Dec. 17, 2024 /PRNewswire/ - Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the Canadian-based leading global medical cannabis company, is pleased to announce a distribution partnership between The Entourage Effect and MedReleaf Australia. The Entourage Effect provides comprehensive distribution and support services to pharmacies in Australia and will serve as a wholesaler for MedReleaf Australia's leading portfolio of products under the CraftPlant, Aurora, and IndiMed brands, furthering the mission to expand access for Australian patients.

"We are deeply committed to broadening access to premium medical cannabis for the expanding community of patients who rely on Aurora, and we seek the right partners in the markets in which we operate to make this happen," said Andre Jerome, Executive Vice President, Global Business Development at Aurora. "Our new partnership with The Entourage Effect broadens our already robust distribution in Australia, ensuring even greater access to our high-quality medical cannabis portfolio, reinforcing our commitment to patient care."

"We are thrilled to be partnering with MedReleaf Australia to facilitate the distribution and wholesaling of their products," said Lisa Varley, CEO of The Entourage Effect. "This collaboration marks a significant milestone for both companies, underscoring our shared commitment to improving patient access and advancing the Australian medicinal cannabis market. Together, we are well-positioned to better serve the needs of patients across the nation."

Aurora remains at the forefront of the global medical cannabis industry and is steadfast in supporting the continued growth and development of the rapidly expanding Australian medical cannabis market. MedReleaf Australia, a wholly owned subsidiary of Aurora, is committed to quality, consistency and proudly meets all TGA-GMP standards.

For further information about medical cannabis products, doctors and health care professionals can contact MedReleaf Australia's clinical support team or visit their website: www.medreleafaustralia.com.au.

About Aurora Cannabis Inc.

Aurora is opening the world to cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and South America. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company's adult-use brand portfolio includes Drift, San Rafael '71, Daily Special, Tasty's, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co., as well as international brands, Pedanios, Bidiol, IndiMed and CraftPlant. Aurora also has a controlling interest in Bevo Farms Ltd., North America's leading supplier of propagated agricultural plants. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, wellness and adult recreational markets wherever they are launched. Learn more at www.auroramj.com and follow us on X and LinkedIn.

Aurora's common shares trade on the NASDAQ and TSX under the symbol "ACB".

Forward Looking Information:

This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements made in this news release include, but are not limited to, statements regarding the distribution partnership between MedReleaf Australia and The Entourage Effect, expectations for the partnership to broaden access of premium medical cannabis products to Australian patients, and the Company's ongoing commitment to patient care and access and advancing the Australian medical cannabis market.

These forward-looking statements are only predictions. Forward looking information or statements contained in this news release have been developed based on assumptions management considers to be reasonable. Material factors or assumptions involved in developing forward-looking statements include, without limitation, publicly available information from governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the risk of successful integration of acquired business and operations (with respect to the Transaction and more generally with respect to future acquisitions), management's estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information from dated June 20, 2024 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR+ at www.sedarplus.com and filed with and available on the SEC's website at www.sec.gov. The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law. 

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SOURCE Aurora Cannabis Inc.

FAQ

What is the purpose of Aurora Cannabis's (ACB) new distribution partnership in Australia?

The partnership between MedReleaf Australia and The Entourage Effect aims to broaden access to Aurora's premium medical cannabis products for Australian patients through expanded distribution and pharmacy support services.

Which brands will The Entourage Effect distribute for Aurora Cannabis (ACB) in Australia?

The Entourage Effect will distribute MedReleaf Australia's portfolio of products under the CraftPlant, Aurora, and IndiMed brands.

How does the December 2024 partnership affect Aurora's (ACB) presence in Australia?

The partnership strengthens Aurora's distribution network in Australia by adding The Entourage Effect as a wholesaler, complementing their existing distribution channels through MedReleaf Australia.

What regulatory standards does Aurora's (ACB) subsidiary MedReleaf Australia comply with?

MedReleaf Australia complies with TGA-GMP standards, ensuring quality and consistency in their medical cannabis products.