H2 is currently completing a state-of-the-art, purpose-built 48,000 square foot cannabis production facility, less than an hour from Montreal (the "Lachute Facility"), and near the Pierre-Elliott Trudeau International Airport. Upon completion, which is anticipated before the end of 2017, the Lachute Facility is projected to produce approximately 4,500 kilograms of high-quality cannabis per annum.
The facility is located on 46 acres (19 hectares) of land (the "Property"), which H2 has the right to acquire for $136,000. The Property has access to ample low-cost power, water and infrastructure to support a very significant capacity expansion -- up to or beyond the scale of the Company's 800,000 square foot Aurora Sky facility, currently under construction at Edmonton International Airport.
The latest Aurora acquisition will be the Company's fourth production facility in Canada - and second site in Quebec, in addition to its 40,000 square foot production "Aurora Vie" facility in Pointe-Claire, on the island of Montreal.
"This is another outstanding transaction that further extends Aurora's lead in establishing advanced-technology, ultra-efficient, low-cost production via purpose-built facilities," said Terry Booth, CEO. "The Lachute Facility, which is 80% complete and has the land and utilities required for significant additional expansion, is fully consistent with the Aurora Standard, and will be instrumental in delivering high quality products for the Quebec, Canadian and overseas markets.
Our participation in the final design and construction of H2's purpose built facility will allow us to leverage our experience, technology, and systems to improve performance and yields beyond the original design. Our recent acquisition of Larssen Ltd. and the formation of Aurora Larssen Projects will play an instrumental role in this respect, and we look forward to a rapid completion of this project in line with the exceptional execution we have shown at Aurora Vie, our other Quebec project."
A central fact of the domestic and global emerging markets is the enormous excess of demand over supply for legal, regulated cannabis products. By leveraging our powerful cash position and excellent liquidity, as well as our experience building the most technologically advanced cannabis facilities, Aurora has a unique ability to acquire top-notch production and distribution assets at attractive valuations, thereby rapidly expanding capacity to meet surging Canadian and global demand."
André Jerome, CEO of H2, added, "We are proud to be joining forces with Aurora, a trail blazer in Canada and around the world in shaping the legal cannabis industry. With the backing of Aurora's operational and cultivation know-how, technological innovation and financial strength, we are confident the Lachute site will be a showcase cannabis production facility, and an important asset in the Company's execution of its domestic and international growth strategy."