Aurora Cannabis Secures Equity Stake in Dutch Company Growery
EDMONTON, Alberta, Nov. 8, 2021 – PRESS RELEASE – Aurora Cannabis Inc., a Canadian company focused on defining the future of cannabinoids worldwide, announced that Aurora Nederland B.V., a wholly owned indirect subsidiary of the company, has entered into an agreement to invest in a significant equity stake in Netherlands-based Growery B.V., one of the few license holders entitled to participate in the controlled cannabis supply chain (CCSC) experiment. The agreement is subject to the regulatory notification procedure.
Aurora’s investment in Growery is structured such that the company intends to invest an immaterial cash amount of which a portion is due and payable upfront, and the remainder dependent on Growery achieving certain milestones. Under the terms, Aurora will provide a secured loan to Growery to construct a facility, fund early operations and provide technical and operational support through its Netherlands-based, state-of-the-art research facility for medical cannabis, established in 2018. Aurora expects to fully consolidate the revenues realized through the investment into Growery under the applicable International Financial Reporting Standards.
« Our investment in Growery is a significant advancement for our global recreational cannabis strategy,” Aurora CEO Miguel Martin said. “The Netherlands is expected to be the largest federally regulated recreational market outside of Canada and is a proof point that our medical market success in Europe is portable to recreational markets. Aurora’s global leadership is underscored by a proven track record of regulatory compliance, testing and commitment to science. With similar values and commitment to excellence, we are pleased to be working with Growery to enter the Dutch market. »
The CCSC is scheduled to be in effect for a minimum of four years, during which the Dutch government will evaluate if the rules of the CCSC should be expanded nationally. Anticipated demand during the CCSC is approximately 30,000 kilograms of dried flower annually. Should the CCSC be expanded nationally (from approximately 80 coffee shops in 10 selected municipalities to the nearly 600 coffee shops that exist today), it is estimated that the Netherlands would require approximately 200,000 kilograms of dried flower annually to fulfill demand.