Aurora Announces Q3 2016 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 30, 2016) - Aurora Cannabis Inc. (CSE:ACB)(FRANKFURT:21P)(WKN:A1C4WM)(OTCQB:ACBFF) ("Aurora" or the "Company") announced its financial and operational results for the three and nine month periods ended March 31, 2016. Aurora is a Licensed Producer of medical cannabis under Health Canada's Marihuana for Medical Purposes Regulations (MMPR).

Q3 Financial and Operational Highlights:

• The Company received its license from Health Canada to sell medical cannabis under the MMPR on November 27, 2015 and began product sales on January 5, 2016.
• Revenue for the three months ended March 31, 2016 was $0.2 million, as compared to $nil in 2015.
• Gross profit was $4.2 million and $6.4 million for the three and nine month periods ended March 31, 2016, respectively. The gross margin in excess of sales was primarily due to the unrealized gain related to accounting changes in the fair value of biological assets.
• The Company received approval from Health Canada on February 16, 2016, to produce derivative cannabis products (cannabis oils) through a Section 56 exemption to the Controlled Drugs and Substances Act ("CDSA").
• Three additional Division 3 (cannabis present) rooms received full Health Canada approval, including a packaging room scalable to handle very large client capacity, and an additional extraction room for the production of derivative products (cannabis oils) via the Company's GMP-compliant CO₂ Supercritical Fluid Extraction unit.
• The Company hired Cam Battley as Senior Vice-President, Communications and Medical Affairs. Mr. Battley is also a member of the Board of Directors of Cannabis Canada (formerly the Canadian Medical Cannabis Industry Association), and chairs the Association's Advocacy Committee.

Events subsequent to Quarter-End:

• On May 30, Aurora announced it had exceeded 3,000 patient registrations, reflecting an organic growth rate over the Company's first five months of product sales that management believes is unsurpassed in the industry.
• On May 24, the Company announced it had launched same-day delivery of cannabis in Calgary and adjacent areas, covering an urban area with over 1.2 million people. Expansion of same day delivery to Edmonton and Red Deer, Alberta is anticipated shortly.
• Aurora announced the closing of a non-brokered private placement of $2.1 million principal amount of unsecured convertible debentures, with net proceeds to be used for working capital purposes.
• Michael Singer, an experienced CFO in the pharmaceutical sector and former CFO of Bedrocan Cannabis Corp., was appointed to Aurora's Board of Directors, to provide financial leadership and further strengthen corporate governance.

"Our results reflect an exceptionally strong start as we scaled up our commercial operations with the commencement of product sales, and demonstrate that we are executing successfully on our business strategies," said Terry Booth, CEO. "Subsequent to quarter-end, patient registration and product sales further accelerated, making Aurora one of the fastest-growing licensed producers in Canada and one of the most well regarded brands in the industry. Based on our organic growth, we believe we are tracking well towards achieving cash flow positive operations in record time. Cannabis cultivation and harvests have delivered consistent yield and product quality. Furthermore, low electricity, water and other input costs have enabled us to achieve the lowest production costs per gram of cannabis in the industry. These factors combine to position us to pursue further expansion of our registered customer base, the transition to profitability, and to establish Aurora as a leader in the cannabis sector."