Aurora Cannabis Inc. (ACBFF) to Make Strategic Investment in Micron Waste Technologies

Companies Enter into Collaboration Agreement

Partnership to Optimize Environmentally-Friendly Organic Waste Digester for Cannabis Waste

TSX: ACB

Aurora Cannabis Inc. (the “Company” or “Aurora”) (ACB.TO) (ACBFF) ( Frankfurt : 21P; WKN: A1C4WM) and Micron Waste Technologies Inc. (“Micron”)  (CSE: MWM, OTC: MICWF, Frankfurt : 7FM2), a developer of proprietary digester solutions for the treatment of organic waste, today announced that the companies have signed a non-binding term sheet for Aurora to make a strategic investment in Micron, and for both companies to collaborate on the optimization of Micron’s technology for the treatment of organic waste generated in the cultivation and production of cannabis products.

Micron has developed a new technology, based on aerobic digestion and subsequent treatment, that converts organic waste into clean water that meets municipal effluent discharge standards. The effluent from currently available digester-based treatment systems of organic waste does not meet municipal discharge standards and requires costly further treatment. Many generators of organic waste elect, instead, to use municipal landfill sites for their organic waste, which is costly and has a negative impact on the environment. The merits of Micron’s technology have been successfully demonstrated with a grocery supermarket chain located in British Columbia, Canada , and Micron has entered into an Memorandum of Understanding with the group to plan for additional installation of Micron’s organic waste digester units at other locations in BC.

Collaboration Agreement

Under the terms of the agreement, which the companies anticipate finalizing soon, Micron will install its technology at one of Aurora’s cultivation facilities, where both companies will work on optimizing Micron’s digester technology to deliver a commercially-ready design specifically for the cannabis industry.

Aurora shall have the option, upon successful completion of the optimization program and proven viability, to sign a definitive supply agreement with Micron for the purchase of Micron’s organic waste digestion solution for each of its cultivation facilities at a preferred pricing structure.

In consideration of Aurora’s participation in the optimization process, and pursuant to the terms of a royalty agreement to be entered into between the parties, Micron shall pay to Aurora a royalty equal to 4% of gross revenues generated by Micron from the sale, lease and/or support services agreement pertaining to digesters sold to companies in the business of cultivating or processing cannabis. Micron shall retain all intellectual property pertaining to its digestion system.

Strategic investment & Investor Rights Agreement

Under the terms of the agreement, once finalized, Aurora will have the right to subscribe for up to 6,000,000 shares of Micron at a subscription price of $0.34 per share for aggregate subscription proceeds of $2,040,000 million in accordance with the terms and conditions of a subscription agreement to be entered into among the parties, representing a 9% interest in the Corporation on a non-diluted basis immediately post-investment. Upon the first successful sale of a digester within the cannabis industry, Micron shall issue a further 2 million shares to Aurora.

Aurora shall have the right to participate in any future offerings of equity or debt convertible into equity of Micron to allow Aurora not to be diluted in its ownership interest of Micron.

Management Commentary

“The investment in and collaboration with Micron reflect our commitment to innovation in the cannabis sector, aimed in this case at achieving improved operational economics, as well as a superior, ‘greener’ approach to organic waste management,” said Terry Booth , CEO of Aurora. “The treatment and disposal of organic waste in the cannabis industry is a time consuming and costly exercise that is subject to strict regulation by Health Canada. Micron’s solution promises to be a very elegant, highly efficient and low-cost alternative that will also have a positive impact on the environment. In making this investment, we anticipate benefiting not only from the positive impact on our operations, but also by being exposed to the upside potential of Micron’s commercial development. We look forward to collaborating with Micron in furthering the market reach of this very promising technology.”