Aurora Cannabis Inc. has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp.to purchase, on a bought deal private placement basis 22,500,000 units of the company at a price of $2.25 per unit for aggregate gross proceeds of $50,625,000.

Each unit will be comprised of one common share of the company and half of one common share purchase warrant. Each Warrant will be exercisable to acquire one Common Share (a “Warrant Share”) for a period of two years following the closing date of the Offering at an exercise price of $3.00 per Warrant Share, subject to adjustment in certain events. The Warrants will be subject to a forced exercise provision if the Company’s daily volume weighted average share price on the TSX Venture Exchange (or such other stock exchange the Company may be trading on) is greater than $4.50 for 10 consecutive trading days. Net proceeds from the Offering will be used primarily towards the Company’s strategic growth initiatives including its planned facility expansion, and for general working capital purposes.

Closing of the Offering is expected to occur on or about February 23, 2017. The Offering is in the form of a bought deal private placement (i) in Canada to “accredited investors” within the meaning of National Instrument 45-106 and other exempt purchasers in each province of Canada, as agreed upon by the Issuer and the Underwriters, (ii) in the United States only to Qualified Institutional Buyers (within the meaning of Rule 144A), and in each case in compliance with the securities laws of the applicable states of the United States, to investors that the Underwriters have reasonable grounds to believe and do believe are Qualified Institutional Buyers, and (iii) outside Canada and the United States on a basis which does not require the qualification or registration of any of the Common Shares, Warrants, Warrant Shares of the Issuer.