Marijuana Business Magazine November-December 2019

Marijuana Business Magazine | November-December 2019 30 Company News | U.S., Canada & International Aurora Sells TGOD Stakes, Closes Big Debt Deal Aurora Cannabis , one of Canada’s largest marijuana companies, sold its remaining stake in Toronto- based The Green Organic Dutchman (TGOD) for $64.9 million (CA$86.5 million). The sale, which gave Alberta-based Aurora an approximate return of 50% on its initial investment, involved 28.8 million shares, or about 10.5% of The Green Organic Dutchman. Though Aurora no longer holds any shares in TGOD, it does retain ownership of warrants, allowing it to purchase up to 16.67 million shares in the company. Aurora also closed an expansion of a loan deal with three of Canada’s biggest banks, making it among the largest nonconvertible debt facilities in the marijuana industry to date, according to analysts. Aurora said it closed term loans worth an additional $120 million (CA$160 million) with a syndicate of lenders led by the Bank of Montreal , plus an option to upsize the facility by about $30 million (CA$40 million). Ontario License Applicant Gets BMO Loan Sunens Farms , a federal cannabis applicant in Leamington, Ontario, closed a nonconvertible debt deal underwritten by the Bank of Montreal . The $63 million (CA$84 million) deal consists of a three- year debt facility for $53.8 million (CA$71.5 million) and a $9.4 million (CA$12.5 million) leasing facility. Proceeds will finance equipment and the first phase of the company’s $113 million (CA$150 million) greenhouse in Leamington, which is expected to be completed by December. Sunens Farms is a joint venture with British Columbia-based Auxly Cannabis Group , which owns 51% of the Leamington company. Auxly expects the Sunens facility will start full production in the second quarter of 2020. Licensing from Health Canada is expected in early 2020, according to an Auxly regulatory filing. Aleafia Expands Grow Space Aleafia Health , a wholly owned subsidiary of Aleafia Farms , has acquired the farmland directly adjacent to its outdoor grow facility in Port Perry, Ontario. The purchase will allow the company to commence the second phase of its outdoor grow expansion, adding an additional 60 acres of cannabis cultivation area, for a total of 86 acres. The transaction closed Sept. 3, with a cash purchase price of $1.2 million. The build-out also will start in September. Aleafia’s plan is to submit a full evidence package—demonstrating that the site is in a grow-ready state—to Health Canada in late 2019. Upon receipt of requisite regulatory approvals, the acquisition will: • Increase outdoor cannabis cultivation area from 26 to 86 acres. • Leverage existing buildings for conversion to cannabis drying rooms and staff accommodations. • Benefit from significant economies of scale and streamlined regulatory process instead of building an entirely new facility. • Provide positive local economic impact through the continued hiring of regionally based contractors and labor. In addition, the company’s wholly owned subsidiary, Emblem Corp., has completed the sale of an unused, 43-acre property in Brant, Ontario, for $6.2 million (CA$8.2 million). The transaction closed Aug. 28. Harvest One Gets Oil License Harvest One Cannabis of Vancouver, British Columbia, received a marijuana oil sales license from Health Canada. The license comes at a time when Harvest One product development is at an advanced stage through licensed third-party partners, while the company plans to launch a variety of vape and infused products later this year. Ontario Move Health Canada granted approval for Muskoka Grown of Bracebridge, Ontario, to distribute dried cannabis products to authorized provincial distributors and retailers and to expand marijuana operations at its Ontario facility. The expansion approval doubles the cannabis cultivation space, bringing the fully financed and constructed 65,000-square-foot facility to full capacity. Along with the additional cultivation space, the incremental 32,500 square feet provide space for a full-scale laboratory and an area designated for research and development. CANADA DEVELOPMENTS