Aurora Cannabis Inc. has announced its proposal to acquire Peloton Pharmaceuticals Inc., a late-stage ACMPR-applicant, out of bankruptcy protection was approved by Peloton’s creditors at a recent meeting.

Peloton is constructing a 40,000 square foot cannabis production facility in Pointe Claire, Quebec, which received a “ready to build” letter from Health Canada in 2014. The Company estimates that construction of the Peloton facility is 80% complete, and expects to be ready for Health Canada inspection pursuant to a License to Produce by the summer of 2017.

Under the terms of the Proposal, and subject to all conditions precedent being satisfied, the Company will provide a total investment pool of $7,000,000 of cash and common shares of Aurora for distribution to creditors.

Completion of the acquisition of Peloton is conditional upon, among other things, the Proposal being approved by the Quebec Superior Court of Justice  and TSX Venture Exchange approval.

The motion to approve the Proposal is scheduled to be heard by the Court in late March. Although the motion may be contested by certain minority shareholders of Peloton, the company anticipates that the Court will grant approval for the Proposal. The Proposal was approved by the required majority of Peloton’s creditors at the Creditor Meeting, with no creditors voting against it, and is being supported by Peloton’s current management.