Custom Search 1
Further to the two companies' joint press release of October 23, 2017, Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF) and Radient Technologies Inc. (TSXV: RTI) today announced the companies have finalized a Master Services Agreement, pursuant to which Radient has agreed to perform certain services for Aurora using its proprietary MAP™ technology, as well as other technologies, as an independent contractor in relation to the development, commercialization and supply of standardized cannabis extracts. The Agreement has an initial term of five years, with an option for Aurora to renew the agreement for an additional five years.
Under the terms of the agreement, Radient will provide processing services to Aurora for the production of extracts from material supplied by the Company, which may include both cannabis and hemp. The agreement initially covers services delivered in Canada, Australia, and the European Union, including Germany where Aurora's wholly owned subsidiary Pedanios is the largest distributor of medical cannabis on the continent. Additionally, Aurora has the right to negotiate on an exclusive basis with Radient to expand the jurisdictions covered. Within the countries covered by the agreement, Radient shall deliver its services under preferential terms to Aurora.
Radient applied in December, 2016 to Health Canada to obtain Licensed Dealer status, and in February, 2017 for Licensed Producer status, and is progressing well through the processes. Upon receipt of either license, Radient will be able to commence production of cannabis extracts from products supplied by Aurora or Aurora's partners.
"This agreement will enable us, in the very near future, to dramatically accelerate the production of high-margin cannabis derivatives under favourable terms," said Terry Booth, CEO. "The market for non-smoked derivative cannabis products is growing at a remarkable pace, and through this agreement we have a cost-effective and scalable means to help meet this demand - particularly once we begin harvests in the first half of 2018 at our 100,000+ kg per annum Aurora Sky production facility. We intend to continue our collaboration with Radient on other R&D projects that we expect will deliver significant value to both companies."
Denis Taschuk, CEO of Radient, added, "This agreement brings together the industry's most technologically advanced cultivation facility, Aurora Sky, with the industry's most advanced extraction platform, Radient's MAP™. With a shared commitment to world-leading quality assurance and the development of innovative products, we are excited about the benefits this partnership will bring to our respective stakeholders."
The Master Services Agreement includes an Investor Rights Agreement that provides Aurora with certain rights to participate in future offerings, providing Aurora with the option to expand its ownership in Radient up to 19.99%. Aurora also has the right to appoint one director to the Radient Board of Directors.