Aurora Cannabis expands its operations in Europe through a strategic acquisition via its subsidiary ICC

Aurora Cannabis is further expanding its operations through the strategic acquisition, via ICC, of another European and Latin American leader: Wayland Group. The acquisition is not yet final; it is based on a letter of intent to acquire 49.91% of Wayland’s international assets and license portfolio. These assets will be consolidated into an international subsidiary owned by both companies, with Wayland serving as the majority manager.

Germany

The subsidiary will hold one of the import licenses for the German market, as well as a three-year supply contract for 9 metric tons of dried cannabis flowers with a German importer and distributor whose network consists of approximately 2,200 pharmacies. International Cannabis will also acquire a 49.9% stake in the production facilities of Mariplant GmbH (a subsidiary of Wayland) in Ebersbach, Germany, which cover 76,180.5 m² and are set to receive EU-GMP certification soon. Currently, the facility produces only CBD on 165 hectares of outdoor cultivation land and operates a packaging and production center. The site’s production of CBD isolates totaled 2.4 metric tons in 2018. International Cannabis will manufacture products based on CBD, including soft gel products and tinctures. In September 2018, the company’s 49.9%-owned subsidiary distributed its first batch of CBD capsules to pharmacies in Germany. The subsidiary plans to obtain a license for the domestic production of medical cannabis. Having an existing infrastructure is a strong selling point.

Switzerland

ICC is set to acquire 49.9% of Haxxon AG, which owns a 5,574 m² production facility on the outskirts of Zurich. The company plans to invest approximately $4.2 million in renovations to increase production capacity. The company also has access to a partnership with the Swiss firm BBI, which already holds two THC research licenses and is therefore in a prime position for potential medical cannabis production in Switzerland. As a result, it is also acquiring a portfolio of exclusive genetics bred for outdoor cultivation in Latin America.

United Kingdom

International Cannabis will acquire a 25.45% stake in Theros Pharma Ltd., a recently established company that has successfully imported cannabis into the United Kingdom for patients with medical prescriptions. Access to this rapidly growing market is a key strategic component of International Cannabis’s vertically integrated distribution strategy, which aims to expand its European distribution network to include more than 36,000 pharmacies.

Italy

International Cannabis will be one of the leading contenders for a medical cannabis license in Italy. The government has signaled its intention to increase production and open the market to private producers (currently, production is overseen by the Ministry of Defense and carried out by military personnel). The Company will acquire a stake in a strategic joint venture between Wayland and a CBD plant owned by the Italian San Martino Group.

Malta

International Cannabis is set to obtain a license to produce finished cannabis-based medications (in dosed form). It has already received a letter of intent from the Maltese authorities. International Cannabis will receive an initial allocation of 2,750 square meters of industrial space for its Maltese manufacturing operations of medical marijuana. to supply raw materials that will then undergo advanced post-processing to create pure cannabis distillates, enabling true pharmaceutical-grade manufacturing.

In addition, the company will expand its operations in Latin America, where it already has a presence. It has secured two additional licenses for the production, extraction, and export of THC and CBD, as well as access to an EY-GMP-compliant API production facility for the production of cannabis distillates in Colombia. A leading application for the first federal medical cannabis license, with approval expected in early 2019, and existing agreements for CBD