One thing we really like about AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) is how many updates the company provides on its ever expanding business dealings. We were just mentioning last week that the company had completed the acquisition of all issued and outstanding shares of CanniMed that it did not already own; an Aurora subplot we’ve been following for a long time. .
This week, we’re swinging back around to cover the most recent announcement from the company regarding a previously announced provate placement deal with a liquor distribution company looking to establish a large cannabis footprint.
AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) announced this week the satisfaction of the escrow release conditions related to Alcanna Inc. (TSX: CLIQ) (Formerly: Liquor Stores NA)’s previous private placement with Aurora, 2,300,000 subscription receipts were converted, on a one-for-one basis, into 2,300,000 common shares of Alcanna. Following the satisfaction of the escrow release conditions, $34.6 million were released from escrow to Alcanna. Following the conversion of the Subscription Receipts, Aurora holds an aggregate of 9,200,000 common shares, representing approximately a 25% ownership interest in Alcanna (on a non-diluted basis).
Alcanna intends to use the proceeds of the conversion and the private placement to establish and launch a leading brand of cannabis retail outlets, whereby it intends to create, initially, some 50 retail cannabis stores in prime retail locations in western Canada, both through conversion of existing stores and by establishing stores in new locations.
The Investment Agreement between Aurora and Alcanna included provisions for Alcanna to develop a retail cannabis network. Since Aurora’s initial investment on February 14th, Alcanna has made considerable progress with the execution of its cannabis strategy.
The company appointed Paul Wilson as President and COO of the cannabis division. Mr. Wilson has deep retail experience, including as CEO and President roles at Mark’s Work Wearhouse, Canadian Tire, Princess Auto, Spence Diamonds and most recently Hold it All and Kit and Ace.
Alcanna is also in the process towards achieving its goal of opening up to 50 cannabis outlets before year end, with a number of stores opening for training and education prior to the legalization of recreational cannabis. It will be implementing a comprehensive educational programme provided by Aurora for its cannabis retail employees to ensure Alcanna cannabis customers will enjoy a superior customer experience. Alcanna also still currently operates 229 retail liquor stores in Canada.
Under the previous private placement, Alcanna also issued to Aurora, for no additional consideration, two classes of common share purchase warrants, that provide Aurora with the right, up until August 14, 2019, to increase the Company’s ownership interest to up to 40%.. (Source: Canada Newswire)
The Canadian cannabis market could be worth anywhere from five to twenty billion dollars a year within the next 36 months. Not only has Aurora been preparing for the recreational cannabis market which kicks off in July, but it has also aggressively pushed for expansion outside of Canadian borders to diversify its portfolio. It’s that aggressive initiative that has made this company one of our favorites in the Canadian marijuana space for a very long time. We’ll be sure to continue looking out for key events. We’ll stay up on any further developments with ACBFF and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free small cap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ACBFF stock, short or long.