Aurora and Hempco announce closing of private placement
Nov. 23, 2017, Vancouver - Aurora Cannabis Inc. and Hempco Food and Fiber Inc. are pleased to announce that the companies have completed a non-brokered private placement for gross proceeds of $3.2 million.
November 23, 2017 By Aurora Cannabis
In relation to the placement, which was described in more detail in a joint news release dated September 18, 2017, Hempco issued 10,558,676 units, at $0.3075per unit, to Aurora. Each Unit consists of one Hempco common share and one non-transferable common share purchase warrant. Each Warrant entitles Aurora to purchase one additional Hempco Share at a price of $0.41 until the second anniversary of the closing date. Each Warrant includes an acceleration clause, providing that if at any time beginning four months and one day after the date the warrant was issued the volume weighted average price per Hempco share on the TSX Venture Exchange exceeds $0.65 for a period of 30 consecutive calendar days, Hempco will have a limited right to accelerate the expiration date of the Warrants.
The securities issued in connection with the private placement are subject to a four-month hold period under applicable securities laws. Consequently the placement, Aurora now holds approximately 33.6% of Hempco on a fully-diluted basis. Additionally, Aurora has an option to purchase further shares from two of Hempco’s principal owners, which, upon full exercise, would increase Aurora’s take in Hempco to over 50%.
“We are very pleased to now be a major investor in, and partner with Hempco”, said Terry Booth, CEO of Aurora. “The finalization of this investment coincides with the proposed Health Canada regulations that, once implemented, will allow Hempco to pursue its whole-plant-utilization vision, and launch new product lines. Our partnership will also allow both companies to benefit from being able to source this material to produce high quality and lower cost CBD products for sale in Canadaand for export.”
Charles Holmes, CEO of Hempco, added “The completion of the Private Placement marks a monumental milestone for Hempco and cements the relationship with Aurora as its strategic partner. We are now able to complete our new processing facility, implement our go-to-market strategy for new products, including our new line of animal feed products, and access new sales channels to further accelerate growth. With the proposed changes in legislation and the resources available to Hempco under the strong and supportive partnership with Aurora, we will now be able to dramatically accelerate the implementation of our commercial strategy and pursue growth aggressively, both within Canada and globally.”
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