EDMONTON and VANCOUVER -- Aurora Cannabis Inc. and Hempco Food and Fiber Inc announced that Aurora has exercised 10,558,676 warrants to purchase common shares of Hempco for total proceeds of $4.3 million to Hempco. Consequent the warrant exercise, Aurora now owns 21,117,352 Hempco common shares, reflecting an ownership interest of approximately 35%.
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"With this further investment by Aurora we are now very well capitalized to accelerate our various strategic initiatives to drive growth at Hempco," said Diane Jang, CEO of Hempco. "Since taking the helm at Hempco, we have made a number of tactical and strategic moves that position the company well to take advantage of a number of opportunities in the health lifestyle food supplements market, as well as for the pet and equine markets. Additionally, with the positive vote on the second reading of Bill C-45 in the Senate, implementation of the new Cannabis Act is that much closer, which would position us very well for whole-plant utilization and further acceleration of our business plan. These funds, and the presence of a large, stable shareholder, puts Hempco in a strong position to pursue a multitude of opportunities and create further shareholder value."
Terry Booth, CEO of Aurora, added, "This additional investment in Hempco was anticipated from Day 1 of our strategic partnership. We are pleased with the work done by Diane and her team, and look forward to supporting Hempco's growth initiatives and capitalizing on the multiple opportunities this partnership creates for us. In addition to the warrants exercised, we intend exercising our option to buy founder shares, and take our position to north of 50%."
For more than 12 years Hempco has been a trusted and respected pioneer, innovator and provider of premier hemp based foods. Hempco is committed to developing hemp foods, hemp fiber and hemp nutraceuticals. Hempco is expanding its processing ability to meet global demands in a 56,000 sq. ft. facility located at Nisku, Alberta.
SOURCE Hempco Food and Fiber Inc.
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