aurora cannabis investor presentation

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INVESTOR PRESENTATION NOVEMBER 2014 Investor Presentation May 2015 CSE:ACB

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Page 1: Aurora Cannabis Investor Presentation

I N V E S T O R P R E S E N T A T I O N !N O V E M B E R 2 0 1 4 !

Investor Presentation May 2015 CSE:ACB

Page 2: Aurora Cannabis Investor Presentation

The purpose of this presentation (the “Presentation”) is to acquaint and familiarize certain prospective investors with the business of Aurora (the “Company”). This Presentation is confidential and private. Distribution is restricted. It may not be reproduced, copied or replicated in any form including print and digital media without the express and written authorization of the Company. This presentation is and at all times shall remain the exclusive property of the Company. You are responsible for protecting the confidentiality and propriety of the information contained in this presentation. Improper disclosure may harm the Company and you will be held responsible for any damages resulting from an improper disclosure on your part. The views expressed herein contain information derived from publically available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This Presentation should not be relied upon as a recommendation or forecast by the Company.

This presentation contains forward-looking information within the meaning of applicable Canadian securities legislation relating, but not limited to, the Company’s expectations, intentions, plans and beliefs. Forward-looking information can often be identified by words such as “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, “goal” or similar words suggesting future outcomes or other expectations, plans, beliefs, objectives, assumptions, intentions or statements about future events or performance. The forward-looking statements contained herein reflect the Company’s current views with respect to future events and are subject to known and unknown risks, uncertainties and assumptions. Many factors could cause the Company’s actual results, performance or achievements to vary from those expressed or implied by such forward-looking information. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, sought, proposed, believed, estimated or expected. Readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. The forward-looking information in this presentation is made as of the date hereof and, except as required under applicable securities legislation, the Company assumes no obligation to update or revise such information to reflect new events or circumstances

DISCLAIMER

Page 3: Aurora Cannabis Investor Presentation

   

TABLE OF CONTENTS

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!   BOARD OF DIRECTORS…………………………………………… !   MMPR EXPANATION……………………………………………….. !   FACILITY…………………………………………………………...… !   PURPOSE BUILT VS RETROFIT……………………………….… !   AURORA’S STRATEGY……………………………………………. !   CURRENT VALUATION & GROWTH POTENTIAL……................ !   OVERVIEW …………….……………………………………………. !   WHY INVEST………………………………………………………… !   INVESTMENT SUMMARY………………………………………… !   CONTACT INFORMATION…………………………………………

 

                     

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Page 4: Aurora Cannabis Investor Presentation

BOARD OF DIRECTORS

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Terry Booth CEO

Former President and owner of large safety codes agency responsible for growing the company to over 100 employees and 90% market share in the Province of Alberta. Accompanied by a strong business acumen providing company stability and direction to various governmental departments, municipal, provincial and federal. Has Taken Aurora to license with this knowledge    

Steve Dobler, P Eng President

Actively involved in numerous private company acquisitions, integrations and sales. Professional and business affiliations include board of directors for a VSE public company, years of AGM experience and supporting numerous charitable organizations.

Jason Dyck, PhD Director

Professor, Director Cardiovascular Research Centre, Co-director, Alberta HEART Department of Pediatrics. Numerous Accolades and Awards including: Post-Doctoral Fellowship Award, Top Paper Published in Hypertension for 2010, Faculty of Medicine & Dentistry Mentoring Award. Professional Speaker and acclaimed medical journal author including the Keynote Speaker for the Netherlands Association for Diabetes Research

Marc Levy Managing Director

Founder & former CEO & Chairman of Norsemont Mining Inc. (TSX: NOM) which grew from a market capitalization of $1 million to sell to Hudbay Minerals Inc. for $520 million.. With over 20 years of management and leadership experience in both private and publicly traded companies.. Involved in several successful exits including Petaquilla Minerals (TSX: PTQ) sold to Inmet Mining for $350 million and Coal Hunter Resources to Cardero Group for $52 million.

Trevor MacMillan, PhD PhD in Agricultural Plant Biotechnology. His post graduate career began with Agriculture and Agri-Food Canada and Health Canada in waterborne photogene isolation and characterization. Previously employed by the Department of National Defense at Defense Research and Development Canada (DRDC)

Charlie Shultz, PhD Working out of Lethbridge College, an expert known world-wide for his visionary work in aquaponics

Nicholas Stromberg Global exposure to cutting edge cannabis-specific cultivation techniques and is backed by the might of General Hydroponics 29 years of R&D into hydroponics and plant nutrition

Jason Dyck, PhD University of Alberta Cardiologist Researcher, bringing an impressive intimate familiarity of what physicians & doctors require in order to make research in medical cannabis practical and acceptable to the medical community at large

ADVISORY BOARD

Page 5: Aurora Cannabis Investor Presentation

MMPR

2000 Medical Marijuana becomes legal in Canada when a momentous court ruling overturned the prohibition of marijuana for medical purposes. Health Canada has since been creating and adapting federal laws for patients needing medicinal marijuana. 2005 An amendment to the previous MMAR (Marihuana Medical Access Regulations) allowed patients to grow for themselves or designate an individual to grow for them. Before this amendment, Health Canada was the only source of medical marijuana for patients that wished to purchase it. 2014 The new MMPR (Marihuana for Medical Purposes Regulations) replaces the MMAR and has significant changes that establish new rules and guidelines for growing, buying and selling medical marijuana in Canada. The MMPR is Health Canada’s commercialization of the medical marijuana industry and outlines a structure for doctors, patients and large scale Licensed Producers.

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New Guidelines Include: Increased testing and security requirements Health Canada no longer involved in the application process to use medical marijuana  

In  February  2015  Aurora  Cannabis  (CSE:ACB)  was  granted  a  License  to  Produce  from  Health  Canada.  hGp://www.hc-­‐sc.gc.ca/dhp-­‐mps/marihuana/info/list-­‐eng.php    

 Doctors and Nurse Practitoner’s able to prescribe Designated growers no longer allowed

 

Page 6: Aurora Cannabis Investor Presentation

THE FACILITY

Aurora began construction of it’s Purpose Built Facility in November of 2013. Located just outside Cremona Alberta and with access to fresh mountain water, which will be provided to the plants, it is the ideal location for security, tax benefits, shipping, farm credit eligibility and growth of product. Using construction, electrical, and HVAC crews experienced with the creation of medical facilities and other marijuana production plants a 55,200 sq ft building was raised from the ground up. The facility layout is constructed in such a manner that it allows for maximization of efficiency in growing, transportation, drying, and packaging of product. Reducing the time between harvesting of the facilities 11 large grow bays and increasing potential output to 8,000 kg/year. Complete with a security level 7 vault, countless security measures, over 1500 of the very best grow lights, high-tech trimming and drying equipment, and a control system that integrates watering, lighting, and cooling through cutting edge software our facility exceeds the expectations of Health Canada and will allow the management and grow teams to vault Aurora into a leadership role in the emerging medical marijuana market.

 

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Page 7: Aurora Cannabis Investor Presentation

PURPOSE BUILT TO THE AURORA STANDARD

New  Construc-on    New Construction Retrofit    

§  Closed-Loop H-Vac System §  Built Ergonomically Specifically for Cannabis

Production

§  Optimal Dimensions For Heating & Cooling

§  Epoxy Coated Floors to Ensure Easy Cleaning & Disinfection

§  State of the Art Water & Nutrient Delivery System

§  All walls are covered with pharmaceutical grade paneling

                     

§  Outside air and exhaust which may result in Contaminated (Moldy) Product

§  Work Processes Must be Adapted to the Limits

of the Structure & Design Built for Other Manufacturing

§  Concern of Cross Contamination from Previous Products Manufactured in the Facility

§  Most retrofit LP’s are in inefficient buildings

§  Exposed to Chronic Water Drip, Humidity & Other Mold Generating Situations

§  Interior Dimensions that Necessitate Excessive Energy Costs and Flow Revisions

   

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Page 8: Aurora Cannabis Investor Presentation

§  Become an Iconic Cannabis Brand §  Capture the Majority of the Market Share §  Diversify as Laws & Market Change §  Build the Right Team & Industry Alliances §  Change the Conversation & Thinking About Cannabis §  Creatively Marketing the Product in Canada & Abroad

AURORA’S OBJECTIVES STRATEGY & USE OF PROCEEDS

§  Develop exclusive partnerships with top North American Cannabis Companies §  Acquire distressed facilities that failed in obtaining licenses §  Prepare for the distinct possibility that extractions will become legal §  Create Alliances throughout the Cannabis space Doctors, Scientists, Pharmacies, Retail, IT, etc §  Operational costs to first harvest §  Acquire Dispensary Process and Production licenses in the U.S. §  Aggressively pursuing export contracts to Israel, Holland, Jamaica and other federally approved

countries §  Patient Database & Online Ordering System with Automated Prompts for Re-ordering

STRATEGY & USE OF PROCEEDS

OBJECTIVES    

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Page 9: Aurora Cannabis Investor Presentation

Current Valuation & Growth Potential

     

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Net Present Value Discount Valuation

Year NPV 1 2 3 4 5

Patients 1500 5000 8000 10000 12000

Grams per year 1,642,500 5,475,000 8,760,000 10,950,000 13,140,000

Revenue $14,782,500 $49,275,000 $78,840,000 $98,550,000 $118,260,000

Gross Margin $6,652,125 $29,565,000 $47,304,000 $68,985,000 $82,782,000

Operating costs $4,200,000 $4,500,000 $4,800,000 $4,800,000 $4,800,000

Capital Summary Securities(#) Amount ($)

Issued & Outstanding Shares 105,000,471 12,525,389

Warrants 22,980,000 5,705,800

Options 6,778,000 1,279,800

Fully Diluted 134,758,471 19,510,689

Page 10: Aurora Cannabis Investor Presentation

OVERVIEW

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Established 2013 Employees 20 & 4 Directors

Facility Address 4439 TWP Road 304, Cremona, Alberta, T0M 0R0

Corporate Address 610-700 West Pender Street, Vancouver, BC, V6C 1G8

Listed CSE:ACB

Market Cap (Basic) $38,516,000

Share Price (May 19th, 2015) $0.36

Shares Outstanding (Basic) 106,990,138

Shares Outstanding (Fully Diluted) 135,550,000

Cash & Cash Equivalents $1,291,000.00

Op Cost at Full Capacity (Monthly) $350,000.00

Insider Ownership 39.8% (Non Diluted) 31.4% (Fully Diluted)

Page 11: Aurora Cannabis Investor Presentation

Aurora now trades publicly on the CSE under the symbol “ACB”. Aurora’s CEO, Terry Booth and President, Steve Dobler, have over $4MM invested of their own funds. An investment in Aurora secures your place with a pioneer corporation in an industry with exponential economic possibilities. Aurora’s initial facility is capable of producing over $50 million of revenues per year from the sale of High quality, clean & safe medical marijuana. Our expected market growth has Aurora expanding its production ability by 55,000 square feet every 1.5 years. We are in negotiations to secure another 400,000 square feet of production space in 2015. Have security by investing with successful business owners and a high caliber management team poised to capitalize in a new industry. The Aurora Standard is already being recognized by the competition and the North American Cannabis Industry.  

Why Invest

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Page 12: Aurora Cannabis Investor Presentation

Investment Summary

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• As fully licensed to produce up to 5,500kg per year, capable of over 8,000kg • An established and rapidly growing “subscription” Patient database • Executing growth strategy with other facilities, physician relationships and marketing • A targeted and planned entry into the Washington State Recreational Market • Reputable, proven management and board of directors with significant regulatory skills • Purpose Built State of the Art Facility, considered by many as the most advanced Canadian Facility • Well capitalized for growth and expansion • Capitalization plans that are realistic and accretive minimizes dilutionary risk          

Page 13: Aurora Cannabis Investor Presentation

Contact Information

Aurora Investor Relations Marc Levy Director 1.604.506.6280 [email protected]

Aurora Corporate Terry Booth CEO 1.780.722.8889 [email protected]

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Ken Faulkner Business Development Director 1.250.862.0724 [email protected]  

Paul J. Searle Investor Relations Manager 1.778.240.7724 [email protected]