Aurora Cannabis and MedReleaf Australia Announce Strategic Agreement

Rhea-AI Summary

Aurora Cannabis Inc. has announced a five-year strategic supply agreement with MedReleaf Australia, making MedReleaf the exclusive supplier of Aurora's brands in Australia. The partnership covers EUGMP-certified products, including dried flower, oils, and soft gels, without requiring capital investment from Aurora. With Aurora holding a 10% stake in MedReleaf, this move aims to enhance the availability of high-quality medical cannabis for patients in Australia. Both companies are committed to expanding their reach in the rapidly growing Australian medical cannabis market.

Positive

• Strategic five-year supply agreement with MedReleaf Australia to enhance product distribution.
• Aurora brands will be exclusively supplied, increasing market presence in Australia.
• No capital investment required from Aurora, reducing financial risk.

Negative

• None.

Broadest Medical Cannabis Product Range in Australian Market

NYSE | TSX: ACB

EDMONTON, AB, Jan. 27, 2021 /PRNewswire/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, today announced it has entered into a strategic agreement with MedReleaf Australia ("MedReleaf"). The companies have signed a five-year supply agreement, which provides for MedReleaf to act as the exclusive supplier in Australia of Aurora's MedReleaf, CanniMed and Aurora brands. Products covered by the agreement will be EUGMP certified and include dried flower, oils, and soft gels, as well as future products employing new delivery mechanisms. The agreement does not require or include any capital investment by Aurora.

MedReleaf Australia, in which Aurora holds a 10% ownership stake, is a fully licenced, private company operating in the Australian medical cannabis sector since 2016. MedReleaf and Aurora currently supply products to the Australian medical cannabis system. This agreement will advance that offering and extend availability of high-quality, medical cannabis to patients. MedReleaf is one of the six founding members of the trade association Medicinal Cannabis Industry Australia (MCIA).

"We are pleased to have established a long-term strategic relationship with MedReleaf to exclusively distribute the Aurora, CanniMed and MedReleaf brands in Australia," said Miguel Martin, CEO of Aurora. "The team at MedReleaf have created an asset-light, sustainable growth platform in Australia to assist physicians, pharmacists and patients across the country in accessing the high-quality range of Aurora cannabis medicines."

Russell Harding, CEO of MedReleaf added, "Australia's medical cannabis system is well designed, well regulated, and among the fastest growing in the world. Our strategic supply agreement with Aurora ensures that our patients will have reliable access to cannabis medicines with a worldwide reputation for quality and in accordance with the stringent requirements of Australia's Therapeutic Goods Administration. To support our companies' shared objectives in the Australian market, we will focus with diligence and discipline on continuing to expand our patient and prescriber base."

About Aurora

Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The Company's brand portfolio includes Aurora, Aurora Drift, San Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and Reliva CBD. Providing customers with innovative, high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched. For more information, please visit our website at www.auroramj.com.

Aurora's Common Shares trade on the TSX and NYSE under the symbol "ACB" and is a constituent of the S&P/TSX Composite Index.

Forward Looking Statements

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 statements regarding the supply of cannabis products to MedReleaf Australia. These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward looking statements are based on the opinions, estimates and assumptions of management in light of management's experience and perception of historical trends, current conditions and expected developments at the date the statements are made, such as current and future market conditions, the ability to maintain SG&A costs in line with current expectations, the ability to achieve high margin revenues in the Canadian consumer market, the current and future regulatory environment and future approvals and permits. 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, including the risks associated with: entering the U.S. market, the ability to realize the anticipated benefits associated with the acquisition of Reliva, achievement of Aurora's business transformation plan, general business and economic conditions, changes in laws and regulations, product demand, changes in prices of required commodities, competition, the effects of and responses to the COVID-19 pandemic and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information form dated September 24, 2020 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC's website at www.sec.gov, any of which could cause the Company to change its use of proceeds from the Offering. 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 strategic agreement between Aurora Cannabis and MedReleaf Australia?

Aurora Cannabis has entered a five-year supply agreement with MedReleaf Australia, making them the exclusive supplier of Aurora's brands in Australia.

How will the agreement impact Aurora's presence in Australia?

The agreement is expected to enhance the availability of Aurora's high-quality medical cannabis products in the growing Australian market.

What products are included in the Aurora and MedReleaf agreement?

The agreement covers EUGMP-certified products, including dried flower, oils, and soft gels.

What stake does Aurora hold in MedReleaf Australia?

Aurora holds a 10% ownership stake in MedReleaf Australia.

What does EUGMP certification mean for Aurora's products?

EUGMP certification ensures that the products meet strict quality and safety standards in the European Union.