Aurora Cannabis (OTC:ACBFF), a Canadian licensed cannabis producer, headquartered in Vancouver, BC, announced on June 7th that it has entered into a strategic agreement with Montreal-based Capcium.
Capcium is a global leader in softgel manufacturing and has become one of the leading manufacturers in the cannabis industry. The company has developed expertise in high-precision dosage controlled softgels.
The companies have agreed to produce high quality cannabis-based softgels for patients and as part of the agreement, Aurora has acquired a 19.99% ownership interest in Capcium by way of a non-brokered private placement for consideration of $10 million.
Capcium plans on using proceeds from the investment with Aurora in expanding its cannabis softgel manufacturing business. The company intends to construct and operate a large state-of-the-art facility that is expected to be completed in the fourth quarter of 2019.
Both companies have agreed to immediately establish a high-volume, state-of-the-art softgel manufacturing operation at Aurora Vie, the Company’s cannabis production facility located in Pointe-Claire , Québec.
CEO of Aurora (OTC:ACBFF), Terry Booth commented, “This investment in Capcium reflects our strategic objective to further expand our differentiated, higher-margin product offerings. Capcium’s extensive know-how has enabled it to develop an advanced technology for the high-volume production of cannabis-based softgels. This provides us with a strong competitive advantage, positioning us well to build a leading position in the production and sale of value-added cannabis products globally. We are proud that Aurora quickly is becoming the partner of choice in the cannabis industry, and we look forward to capitalizing with Capcium on the significant opportunity that softgels represent.”
CEO of Capcium, Sylvain Duvernay remarked, “Teaming up with what we believe to be the most innovative Licensed Producer with excellent international distribution channels, greatly enhances our growth prospects. We are delighted that Aurora and Capcium will become long-term partners and look forward to bringing Québec made softgel cannabis products to Canada and to the global markets.”
It was last week that Canada’s Senate voted in favor of Bill C-45, which governs the recreational legalization of marijuana.
Aurora CEO Mr. Terry Booth stated, “This truly is a monumental day for Canada and the cannabis movement, with the ground-breaking Senate vote to pass Bill C-45 representing a major milestone, strengthening our global leadership in the cannabis sector, and making this country the first in the Group of Seven Nations (G7) to take this historic step. We applaud the government’s intelligent and rational public policy, initiating wholesale legislative changes – focused on clearly defined objectives – to reduce the negative impact of prohibition, while establishing a well-regulated system designed to protect public health and public safety. We must also salute and congratulate the advocates, the activists and the passionate who for decades, and often at great personal risk, spoke up, sat in, appealed laws, wrote new ones, ran studies, educated, and changed perceptions towards ending criminal prohibition.”