Aura Health Inc. (the “
Company” or
“
Aura”)
(CSE:BUZZ,
OTCQB:LMLLF) is pleased to provide an operational
update on Pharmadrug Production GmbH (the “
German
Business” or “
Pharmadrug”) and
additional resources allocated to investor relations.
Pharmadrug German
Operations
Following Aura’s German operational update on
June 5, 2019, Pharmadrug received its second, much larger shipment
of medical cannabis from Netherlands at the end of June. July and
August sales have been tracking nearly 300% higher than the
previous four months.
Currently, Pharmadrug has a 190 kg 12-month
allocation from the regulator in Germany, The Federal Institute for
Drugs and Medical Devices, known as BfArM
(“BfArM”). The allocation is sourced solely from
Netherlands.
Based on Pharmadrug’s current growth trajectory
and the continued chronic supply shortage of medical cannabis in
Germany, management is confident in its ability to distribute its
full allocation of cannabis over the next several months. While
this is dependent on a variety of factors, including continued
available supply from Netherlands, management believes it is
readily achievable. Based on the current selling price of EUR 9,50
per gram, this would equate to ~CAD$2.7M in 12-month revenue for
Aura.
Additional Growth Planned for Fiscal
2020
Management sees two ways to materially increase
Pharmadrug’s German supply and revenue for F2020:
- Increase in the quota from BfArM,
achievable once current allocation run rates have been met.
- Source additional suppliers of
cannabis. The Company is in active supply discussions with
producers in both Canada and Israel, adding to the current 190 kg
quota. Aura already has a supply agreement with FSD Pharma
(“FSD”, CSE:HUGE), and is working
to equip FSD with EU-GMP certification. Management is confident it
can add supply from at least one new producer in both Canada and
Israel in 2020.
Expansion Into Additional European
Markets
Aura plans to grow its distribution platform
beyond Germany into other European Union countries. Pharmadrug is a
Schedule I Narcotics distributor, allowing the German Business to
export GMP medical cannabis to other EU countries as and when those
countries legalize cannabis. For instance, Poland awarded medical
cannabis import licenses in 2018 and began importing this year. The
French Senate passed a bill in June for a trial run of CBD,
trace-THC medical cannabis. With no plans of domestic cultivation,
France will require importation of GMP medical-grade cannabis. As
well, Italy is currently importing from Netherlands.
Aura and Pharmadrug’s supply agreement
discussions address the needs for German demand as well as the
requirements for other European markets, including strains with
high-CBD and trace-THC. As per our previous operations update (June
5, 2019), Aura believes Israel will be a major supplier of medical
cannabis to the European markets due to its adherence to EU-GMP
standards, established R&D, and product development policies.
Aura intends to be a key player in bringing Israeli supply to the
European markets via Pharmadrug.
Investor Relations
Aura continues to invest in its investor
relations strategy as management believes the Company’s story is
not yet well understood by Canadian and international investors.
Aura has extended its agreement with Adelaide Capital (“Adelaide”)
for a three-month term. Adelaide is a small-cap investor relations
firm with relationships in both the institutional and retail
landscapes in the Canadian and U.S. markets. Under the terms of the
agreement with Adelaide, Adelaide will receive $8,000 per month and
100,000 options with an exercise price of $0.22 expiring on August
24, 2021 and vesting immediately.
In addition, the Company has retained Wizard
Media Group BV (“Wizard”) which operates the website
www.smallcaps.us. Wizard has tens of thousands of followers in
Europe and North America and since 2003 has assisted hundreds of
Canadian-listed companies attain a broader investor following.
Wizard will focus on adding a European investor following for
Aura’s German-focused business. For the six-month term, Wizard will
be paid EUR 15,000.
About Aura Health Inc.
Aura Health is building a vertically-integrated
cannabis business focused on Europe and Israel. The Company (i)
owns 80% of Pharmadrug, a German medical cannabis distributor, with
a Schedule I European Union narcotics license allowing for the
importation and distribution of medical cannabis to pharmacies in
Germany and throughout the EU, (ii) owns a convertible note
convertible into 54% of the outstanding equity of HolyCanna
Ltd., a cultivation and nursery license holder in Israel, and (iii)
has a binding LOI to purchase 57% of CannabiSendak Ltd., the
builder of a network of dispensaries in Israel. Additionally,
through significant extraction IP, Aura is dedicated to building a
high-margin, downstream business of end-user products.
For further information, please contact:
info@aurahealthinc.com
Daniel Cohen, CEO Aura Health Inc. (647)
202-1824
David Posner, ChairmanAura Health Inc. (647)
985-6727
Deborah Honig, Investor RelationsAdelaide
Capital Markets (647) 203-8793
Caution Regarding Forward-Looking
Information:
THE CANADIAN SECURITIES EXCHANGE HAS NOT
REVIEWED NOR DOES IT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
This news release may contain forward-looking
statements and information based on current expectations. These
statements should not be read as guarantees of future performance
or results of Aura. Such statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results, performance or achievements to be materially different
from those implied by such statements. Such statements include
reference to Pharmadrug's ability to distribute its full allocation
of cannabis over the next several months and potential revenue
therefrom, Pharmadrug's ability to increase supply of
cannabis and increase its permitted allocation for Germany, the
Company's ability to expand into additional European Union markets,
the role of Israeli as a major supplier of medical cannabis and the
ability of the Company to building a high-margin, downstream
business of end-user products. There is no certainty that any of
these events will occur. Although such statements are based on
management's reasonable assumptions, there can be no assurance that
such assumptions will prove to be correct. We assume no
responsibility to update or revise them to reflect new events or
circumstances.
The Company's securities have not been
registered under the U.S. Securities Act of 1933, as amended (the
"U.S. Securities Act"), or applicable state securities laws, and
may not be offered or sold to, or for the account or benefit of,
persons in the United States or "U.S. Persons", as such term is
defined in Regulation S under the U.S. Securities Act, absent
registration or an applicable exemption from such registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in the United States or any jurisdiction in
which such offer, solicitation or sale would be unlawful.
Additionally, there are known and unknown risk
factors which could cause the Company's actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information contained herein, such as, but not
limited to dependence on obtaining regulatory approvals; the
ability to locate additional supply of medical cannabis, owning
interests in companies or projects that are engaged in activities
currently considered illegal under United States federal law;
changes in laws; limited operating history, reliance on management,
requirements for additional financing, competition, hindering
market growth; regulatory and political change.
All forward-looking information herein is
qualified in its entirety by this cautionary statement, and the
Company disclaims any obligation to revise or update any such
forward-looking information or to publicly announce the result of
any revisions to any of the forward-looking information contained
herein to reflect future results, events or developments, except as
required by law.
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