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Aurora Cannabis Inc. (the "Company" or "Aurora") (TSXV: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) and Radient Technologies ("Radient") (TSX-V: RTI) are pleased to announce the successful completion of their Joint Venture Research Activity ("JV"), confirming the effectiveness of Radient's proprietary MAPTM Technology and associated continuous flow design for extracting cannabinoids from dried cannabis.
On December 14, 2016, Radient and Aurora executed a Memorandum of Understanding ("MOU") to evaluate an exclusive partnership for the Canadian market with regard to the joint development and commercialization of superior and standardized cannabinoid extracts. The first element of the collaboration was the execution of a joint research project to assess the feasibility of applying Radient's proprietary technology for the extraction of cannabinoids from cannabis, including the establishment of parameters of extraction yields, recovery rates of available cannabinoids, purity of the extracts obtained, and the determination of cannabinoids and terpene profiles. The feasibility study also included an assessment of the potential processing throughput achievable using Radient's large-scale continuous-flow MAPTM extractor, based upon established extraction conditions.
Radient's MAPTM technology enables precise control of temperature and extraction time of continuously flowing material, both of which affect purity and extract profile. This careful control of extraction parameters and product quality is something that is impossible to achieve at large scale using conventional methods. Extremely high (quantitative) recovery of available cannabinoids is possible in extraction times that are shaved from hours to minutes.
The study was conducted in two phases: bench-scale screening experiments of MAPTM extraction conditions; and scaled-up experiments under preferred extraction conditions. The analytical data from the research project were verified and confirmed by Anandia Labs Inc., a leading Canadian independent cannabis testing laboratory.
Based on the positive results of the study Radient and Aurora have agreed to negotiate an exclusive development and commercialization agreement for the use of Radient's technology, and to continue their exclusive Joint Venture for additional scientific Research and Development of cannabis and hemp products.
"These results clearly validate the game changing nature of Radient's technology for the cannabis sector," said Terry Booth, CEO of Aurora. "The ability to produce high-purity concentrates at very high throughputs, while preserving terpene profiles, will provide a substantial competitive advantage for us in addressing the high-growth concentrates market. We see a number of factors that will require a significant expansion of production capacity for extracts, including our own expanding national and international footprint, the continued strong growth of the medical market in Canada, Germany and Australia, and the commencement of Canadian adult usage sales anticipated for July of 2018. The exclusive use of Radient's technology positions us as the clear leader in this field, which we believe will enable Aurora to capture a significant share of this high-margin market."
Booth concluded, "Aurora is very pleased to be a significant shareholder of Radient, and as part of our partnership with them, plan on continuing to hold a significant position in Radient."
Radient's CEO, Denis Taschuk, stated, "The positive outcome of the joint research project is a key milestone in the commercial development of Radient. With these results in our pocket, we are now able to commercialize our technology in what has become the fastest growing sector of the North American economy. We are very pleased to embark on this journey with Aurora, who have proven to embrace innovation and who have developed one of the strongest brands within the cannabis industry, both in Canada and internationally."
Radient also announces that, pursuant the terms of the convertible debenture issued to Aurora on February 13, 2017, Radient will make the first quarterly interest payment of $50,000 to Aurora through the issuance of additional units to Aurora ("Units"). Each Unit consisting of one common share and one common share purchase warrant.
The interest payment was payable to Aurora on May 13, 2017 and the conversion price for the issuance of the Units is $0.48 being Radient's closing trading price on Friday May 12, 2017. Based on this conversion price, Radient will issue 104,167 common shares and 104,167 common share purchase warrants to Aurora in satisfaction of the interest payment. Each common share purchase warrant will entitle Aurora to acquire one additional common share of Radient at an exercise price of $0.48 per share. The issuance of the Units to Aurora is subject to final approval of the TSX Venture Exchange and the Units will be subject to a four month hold period.