Aurora Cannabis Closes On Debt Facility, Extends TGOD Option

Aurora Cannabis Inc. (ACBFF) said that it has closed its previously announced debt facility with the Bank of Montreal for a C$150 million term loan and a $50 million revolving credit facility. The two pieces of debt will mature in 2021 with the option to increase it to C$250 million.

According to a company statement, the debt facility is primarily secured by Aurora’s production facilities, including Aurora Sky, Aurora Mountain, and Aurora Vie. Aurora Sky is strategically located at Edmonton International Airpor and is projected to produce in excess of 100,000 kg per year of high-quality, low-cost per gram, cannabis upon completion.

“We are incredibly proud to have successfully closed this historic debt facility supported by a premier Canadian bank, BMO, who understands our needs and potential. This is both a reflection of the rapidly maturing nature of the broader cannabis industry and strong validation of the economic potential of Aurora’s best-in-class, technologically advanced production facilities,” said Terry Booth, CEO of Aurora. “This additional capital positions us well to continue building the pre-eminent global cannabis company with a focus on vertically integrated, geographically and horizontally diversified assets.”

In addition to closing on the debt deal, Aurora also announced that it has agreed with The Green Organic Dutchman (TGODF) to extend its deadline for the company’s first milestone option by six weeks. to October 12, 2018, from the original date of August 2. The option enables Aurora to purchase an additional 8% of TGOD shares.

“The Aurora partnership has been incredibly beneficial for both parties to date,” said Brian Athaide, TGOD’s CEO. “In addition to the organic supply agreement, the value of Aurora’s initial investment has increased nearly five-fold. In turn, the assistance provided by the Aurora team has helped accelerate our progress across all divisions, and we look forward to continuing our strategic partnership as we work towards building the largest organic cannabis brand in the world,” continued Athaide.

Terry Booth, CEO of Aurora, added, “We are pleased with the progress made at TGOD to date, as reflected by the significant appreciation of our investment. We are now working with the TGOD team on finalizing the details of our go forward partnership, and we will continue to support them as they execute on their strategy.”

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.


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