Aurora Cannabis Announces Financial Results for the Third Quarter of Fiscal Year 2019

Strong growth in net income across all channels, $ 65.1 million
Production volumes double as production costs per unit decrease
On track to generate positive EBITDA as of the fourth quarter of fiscal year 2019

TSX: ACB | NYSE: ACB

EDMONTON, May 14, 2019 / PRNewswire / – Aurora Cannabis Inc. (the "Business" or "Dawn(NYSE: ACB) (TSX: ACB), today announced its financial and operating results for the third quarter March, 31st^st, 2019.

Highlights of the third quarter of 2019

(Unless otherwise noted, comparisons are made between the results for the third quarter of 2019 and those of the second quarter of 2019)

• Strong and consistent revenue growth of 20% on average across all key markets, driven by the successful ramp-up of the company's production and the continued strong performance of the Canadian consumer and the Canadian and international markets for Cannabis for Purposes medical:
• Growth in the Company's medical patient base, up 5% to 77,136. As of the date of this release, Aurora has 82,745 active enrolled patients, an additional 7% increase, and continues to register new patients as product availability increases.
• Cash costs to produce per gram decreased by 26% $ 1.42 per gram, as the initial impact of the scale and effectiveness of Aurora Sky began to materialize.
• Production volume increased 99% to 15,590 kg, up 1,200% year-on-year. The increase in production accelerated during the quarter, with most of the volume harvested in the second half of the quarter.
• Selling, administrative and other overhead expenses stabilized with a modest increase of 1%, reflecting Aurora's ongoing commitment to rigorous cost management.
• Average selling price per gram decreased slightly due to product mix effects (larger contribution from wholesale consumers), extraction capacity constraints resulting in extract-based products accounting for 18 % of net sales of cannabis and the first impact of the excise tax on medical cannabis for the first full quarter.
• Adjusted EBITDA loss improved by 20% $ 36.6 million while the company continues to aim for positive EBITDA results starting in the fourth quarter of 2019 as operations continue to grow.
• In January 2019, Aurora completed a USD 345 million Convertible, the proceeds being used to continue the growth of the company in Canada and internationally. The IFRS accounting standards require a mark-to-market adjustment at the end of each period for the derivative portion of these notes. Due to the increase in Aurora share price since the issuance of the Notes, the Company has recorded a $ 102 million non-cash fair value loss in the income statement for the third quarter of 2019.

Management Commentary

"I am exceptionally proud of our company and team as Aurora continues to implement its national and international growth strategy, and we have achieved solid revenue growth and strong operating results over the past year. a challenging quarter for the entire long-term sustainable sector. " Terry Booth, CEO. "During the quarter, we officially welcomed Nelson Peltz a key strategic advisor. He has been incredibly engaged, collaborative and strategically focused to help us continue to grow in global markets and with mature businesses in adjacent industries. "

Glen IbbottCFO added, "Aurora is an extremely active and diversified company, a leader in cannabis research, product development, culture, global reach and revenue growth, with a strong third quarter on all fronts. it is time to change The company we have built with determination, both through our organic growth and targeted acquisitions, has provided a unique opportunity: to continue to lead the industry in terms of revenue growth while generating a positive operating profit in short term. "

Key financial and operating metrics for the third quarter of 2019

Perspective

The dawn sky and Bradford the facilities are now operating at full capacity. As a result, the company's annualized production rate at its operational facilities exceeds 150,000 kg per year, based on planted rooms.

Aurora is reiterating its fourth quarter target with available-for-sale production of more than 25,000 kg. Management intends to allocate some of this capacity to its inventory for the manufacture of new products. Aurora remains focused on the need for vassals and some edible products for launch under the new Canadian consumer market regulations, scheduled for the end of the calendar year.

With the acceleration of production, the company continues to increase its manufacturing capacity through innovation and technologies to reduce the time between harvesting and marketing. The company expects increased processing, packaging and delivery efficiency in the fourth quarter and beyond will accelerate product availability.

Provide Europe  and other international markets are expected to increase as more Aurora production facilities get GMP certification from the EU. the Bradford The facility has recently been audited for European GMP certification. In the third quarter, the company began exporting full spectrum cannabis extracts Germany. Management expects these sales to contribute to growth given the higher margins of the statements.

The oil extraction capacity was a constraint in the second and third quarters of 2019. After the end of the quarter, Aurora increased its internal extraction capacity to nearly 7,000 kg per quarter and will reach nearly 16,000 kg per quarter during the first quarter. In addition, the company's extraction partner, Radient Technologies, is stepping up commercial production at its own pace. Edmonton establishment. As a result, Aurora expects an increase in the production of extract-based products and its impact will begin to materialize towards the end of the fourth quarter. This increase in internal and external extraction capacity will strengthen Aurora's ability to produce derivatives on a large scale, which management believes will have a positive impact on revenues and gross margin.

With Aurora Sky now operating at full capacity, the company anticipates a continued reduction in production and manufacturing costs, which will allow cash costs per gram to continue to decline. Management reiterates its expectations that the average cash cost per gram Sky class the facilities will be below $ 1.

With disciplined cost management, the company expects modest growth in selling, administrative and other overhead expenses for the remainder of the year. As a result, management anticipates that with continued revenue growth and lower cash costs per gram, Aurora is well positioned to achieve positive EBITDA starting in the fourth quarter of 2019 (Q2 2019 calendar).

Q3 2019 Update of facilities and production

Aurora defines the production rate as the capacity of all plant chambers approved by the regulator for sale, using mature annualized harvests based on historical yield per plant. These targeted returns have been met or exceeded in all of Aurora's current operating facilities. To view a video preview of Aurora's production facilities, click here: https://youtu.be/irTfAXbFS38.

• Construction at Aurora Sky is complete and all growth rooms have been licensed by Health Canada. Fully planted, Aurora Sky operates at its maximum rated capacity of over 100,000 kg per year.
• All rooms Bradford are licensed by Health Canada and the facility has been fully planted. The plant did not receive any major observations during its audit with a view to obtaining the European GMP certification. Obtaining this certificate will greatly increase the ability of the company to ship its products to the European market.
• The first salable harvest at Aurora Nordic 1 is expected by the end of the fourth quarter of 2019, with product sales planned for December 2019, or as soon as regulatory approvals are provided. First harvests for testing and licensing were completed.
• The construction of Aurora Sun is progressing well, with the facility to be ready for planting by mid-calendar in 2020. Aurora Sun It will be 1.62 million square feet, an increase of 33% over the original size.
• The erection of the steel structure is well advanced and should be completed towards the end of June 2019.
• The construction of the glass roof has begun and should be completed soon after the installation of the steel structure.

• Whistler Alpha Lake currently operating at its planned capacity of 480 kg / year certified organic cannabis, using four culture rooms.
• The construction of Whistler Pemberton is about to be completed in the fourth quarter of 2019
• Four rooms are fully operational with an annual capacity of 1200 kg of certified organic cannabis
• 11 additional rooms should be put online from November 2019
• By the end of its work, Pemberton is expected to produce 4,500 kg / year of certified organic cannabis.
• Pemberton's facilities will include a public lounge to inform visitors about WMMC and its history as pioneers of certified organic cannabis cultivation.
• During the last growing season in Europe Agropro harvested a combined total of 3,950 acres of hemp on Lithuania, Latvia and Estonia. For the upcoming growing season, starting from May 2019Agropro plans to contract 8,150 acres of hemp for harvest, which is expected to begin in August.

Q3 2019 and business highlights thereafter

Acquisitions

• Acquisition of Whistler Medical Marijuana Corporation ("Whistler")
  Sure March 1, 2019Aurora has acquired Whistler, an iconic Canadian organic cannabis brand, which offers a significant premium for its products in the Canadian medicine and consumer markets. The company is currently expanding Whistler's operations and expects an increase in products available for sale for the remainder of the calendar year.
• Acquisition of Hempco Food and Fiber Inc. ("Hempco")
  Sure April 16, 2019, the Company has signed a letter of intent with Hempco to acquire all of the issued and outstanding shares of Hempco. The acquisition will strengthen the infrastructure of industrial hemp and CBD from the company's hemp.
• Acquisition of Chemi Pharmaceuticals Inc. ("Chemi")
  Sure April 24, 2019, the company acquired Chemi, a company Ontariospecialized laboratory in high quality analytical services for the pharmaceutical and cannabis industries. The acquisition aims to expand the company's analytical services for derivatives.

Strategic developments

• The appointment of Nelson Peltz
  Sure March 13, 2019, the named company Nelson Peltz as strategic advisor, collaborate with Aurora to explore opportunities for expansion and partnership globally. Management believes that the Company is well positioned to build partnerships in several industry sectors and is working with Mr. Peltz and his team to evaluate opportunities.
• Aurora Polaris
  Sure February 12, 2019, the Company announced the construction of Aurora Polaris, a 300,000 square foot international logistics center for the industrial production of cannabis products. Construction is proceeding as planned and the company expects work to be completed by the end of the calendar year. In anticipation of new regulations, the company is in the process of installing temporary production lines in licensed areas on its production infrastructure. Canada to ensure full product availability, where permitted.

International Expansion

• German tender for the production of cannabis
  Sure April 5, 2019, the company was selected by the German Federal Institute of Medicines and Medical Devices as one of three winners of a public tender for the cultivation and distribution of medical cannabis. Germany. Aurora got the highest score on 11 of the 13 lots selected and was given the maximum number assigned to a five LP. Aurora began construction work on an installation at Germany and expected product to reach the German market in October 2020. Management expects that becoming a local producer will strengthen brand awareness and market development in a large and important market.
• Exports of medical cannabis to the United Kingdom
  Sure February 11, 2019, the Company completed its first commercial export of cannabis oil to the United Kingdom. In the new UK framework, medical specialists can legally prescribe cannabis-based medicines when they agree that their patients could benefit from this treatment.
• Expansion in Portugal
  Sure February 26, 2019, the company created Aurora Portugal Lda. an agreement to acquire a 51% stake in Gaia Pharm Lda. The construction of a cannabis production center compliant with GMP European standards is under way Portugal.
• Exports of cannabis oil to Germany
  Sure March 11, 2019, the Company began selling cannabis oils to German pharmacies. The Aurora full-spectrum extract is differentiated in a market primarily served by synthetic cannabinoids. In this regard, management believes that the Company has a significant competitive advantage in building leadership, brand awareness and pioneer sales growth in this high margin segment.

Financing activities

• Offer of convertible notes
  Sure January 24, 2019, the company closed an offer of convertible notes for gross proceeds of USD 345 million to support Canadian and international expansion initiatives, for future acquisitions and for general corporate purposes, including working capital requirements, in order to continue the accelerated growth of the Company.
• Filing of Base Shelf Prospectus and Prospectus Supplement for Market Placement
  Sure May 10, 2019, the Company has filed a final simplified base shelf prospectus (the "Shelf Prospectus") with the securities commissions of each of the provinces of Canada. Canada, except Quebecand a corresponding pre-registration statement with the United States Securities and Exchange Commission on Form F-10. These deposits allow the Company to qualify the offering under a prospectus under the following conditions: Canada and United States from up to 750,000,000 USD Common Shares, Warrants, Subscription Receipts, Debt Securities or any combination thereof (all of the foregoing, collectively, the "Note Securities") over the 25-year period. month in which the final short form base shelf prospectus remains in effect. The specific terms of any future offering under the shelf prospectus will be set forth in a prospectus supplement. Any prospectus supplement will be filed with the applicable securities regulatory authorities in connection with such offering.

Sure May 14, 2019, the Company has filed a prospectus supplement (the "Prospectus Supplement") in the Shelf Prospectus. As part of the Prospectus Supplement, Aurora entered into a sale agreement dated May 14, 2019 with Cowen and Company, LLC ("Cowen") and BMO Capital Markets ("BMO") who will act as selling agents (the "selling agents") for the sale of Aurora common shares (the "common shares"). "By distribution on the market" on the New York Stock Exchange in Japan. United States. Subject to the terms of the sales contract and the applicable regulatory requirements, ordinary shares of a maximum total amount of $ 400,000,000 may be issued and sold from time to time, at Aurora's discretion, for a maximum period of 25 months. The Common Shares will be distributed at the prevailing market prices at the time of the sale of such Common Shares. As a result, prices may vary between purchasers and during the distribution period. The net proceeds from these sales, if any, will be used for the general purposes of the business, including: (i) working capital; (ii) potential future acquisitions; (iii) repayment of the debt; and (iv) capital expenditures. The volume and timing of sales, if any, of common shares are at the discretion of Aurora.

Aurora plans to use the net proceeds of the prospectus to support its expansion initiatives, global partnership strategy and to continue the accelerated growth of the Company.

The shelf prospectus and the prospectus supplement have been filed on SEDAR and the US version of the shelf prospectus and the prospectus supplement have been filed on the SEC's website (www.sec.gov).

This press release does not constitute an offer to sell or the solicitation of an offer to purchase. No sale of such securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the Act. securities laws of such a jurisdiction.

Financial Supplement T3 2019

Grant Options

The Company has granted a total of 383,000 options to purchase Aurora common shares to the directors and officers of the Company. The options vest annually over a 36-month period and have a weighted average exercise price of $ 9.35 per common share.

Conference call

Aurora will hold a teleconference tomorrow, May 15, 2019, to discuss these results. Terry Booth, Executive Director, Glen Ibbott, Chief Financial Officer, Cam Battley, Chief Executive Officer, and Michael Singer, Executive Chairman, will host the teleconference from 10:30 am Eastern Time. A question and answer session will follow the presentation of the management.

About Aurora

Headquarters at Edmonton, Alberta, Canada With a financing capacity of more than 625,000 kg per year and sales and operations in 24 countries on five continents, Aurora is one of the largest and most important cannabis companies in the world. Aurora is vertically integrated and horizontally diversified across all key segments of the value chain, from engineering and facility design to research on cannabis selection and genetics, cannabis production and hemp, derivatives, development of high added value products, home grown, wholesale and retail.

Highly differentiated from its peers, Aurora has implemented a particularly advanced, consistent and efficient production strategy, based on facilities specifically designed to integrate state-of-the-art technologies into all processes, defined by extensive automation and customization, enabling large-scale production of low-cost quality. Designed to be replicated and scalable globally, our production facilities are designed to produce cannabis on a significant scale, with high quality, industry leading yields, and low production costs per gram. Each Aurora facility is built to meet European GMP standards. The EU GMP certification has been awarded to Aurora's first production facility in Mountain View County, to the MedReleaf Markham facility, and to its European medical cannabis distributor, Aurora Deutschland.

In addition to the Company's rapid organic growth and strong execution of its strategic mergers and acquisitions, which to date include 16 wholly owned subsidiaries – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland, H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia, HotHouse Consulting, MED Colombia, Agropro, Borela, ICC Labs, Whistler and Chemi Pharmaceutical – Aurora stands out with its reputation as a partner and employer of choice in the global cannabis industry, having invested in and established strategic partnerships of leading innovators, including: Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Capcium Inc. (private), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals ( OTCC: CTTH), Alcanna Inc. (TSX: CLIQ), High Tide Inc. (CSE: HITI) and EnWave Cor porate (TSXV: ENW).

The Aurora common shares trade on the TSX and the NYSE under the symbol "ACB" and are part of the S & P / TSX Composite Index.

For more information on Aurora, please visit our investor website, investor.auroramj.com

Terry Booth, CEO
Aurora Cannabis Inc.

Forward-Looking Statements and Non-IFRS Sector Measures

This press release refers to certain non-IFRS measures, including certain industry parameters. These measures and measures are not recognized. The measures under IFRS do not have the meanings prescribed for them and, therefore, are unlikely to be comparable to similar measures presented by other companies. These measures are provided as additional information to these IFRS measures by providing a better understanding of our operating results from a management perspective. As such, these measures should not be viewed in isolation or as an alternative to reviewing our financial information presented under IFRS. This press release uses non-IFRS measures, including "EBITDA", "production rate", "available-for-sale production" and "selling, general and administrative expenses". Available-for-sale production and production rate are operating measures commonly used in the industry but can be calculated differently compared to other industry companies. These non-IFRS measures, including sectoral measures, are used to provide investors with additional measures of our operating performance that may not be apparent if they were based solely on IFRS measures. Definitions of non-IFRS measures are included in our financial statements, MD & A and this press release.

This press release also contains statements containing certain "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are often characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate" "," may "," will "be", "potential", "proposed" and similar words, or statements indicating that certain events or conditions "may" or "occur" and will include, but are not limited to, the following: execution of final agreements and closing of the transaction. These statements are only predictions. Various assumptions have been used to draw the conclusions or projections contained in the forward-looking statements throughout this press release. Forward-looking statements are based on management's beliefs and beliefs as of the date they are made and are subject to various risks, uncertainties and other factors that could cause actual events to differ materially from those projected. in the future. statements-looking. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue to invest in infrastructure to support growth, the ability to obtain financing on terms and conditions. Acceptable, continuous quality of our products, experience and customer loyalty, development of third-party sales channels, governmental or otherwise, for adults, management's estimate of consumer demand in Canada and in the countries in which the company exports, the forecast of future results and expenses, the availability of additional capital to complete the construction projects and the improvement of the facilities, the risk of successful integration of the acquired activities, the ability to to develop and maintain distribution capabilities, the impact of competition and the possibility of changes to the laws, rules and regulations in force in the sector. The Company has 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 law. .

SOURCE Aurora Cannabis Inc.

Liens connexes

https://auroramj.com/