- Aurora Cannabis Inc, a licensed producer of medical cannabis, is acquiring an initial 9.14% ownership interest in CTT Pharmaceutical Holdings Inc. The agreement includes an issuance of warrants enabling to Aurora to increase ownership to 42.5%.
- Dr. Pankaj Modi, CEO of CTT: “We believe Aurora more than any other LP, provides the global distribution channels, regulatory affairs expertise, scale and manufacturing ability to successfully commercialize this unique technology on a global basis.”
Aurora Cannabis Makes Strategic Investment in CTT Pharmaceutical
Aurora Expands Exclusive Access to CTT’s Product and Development Pipeline
TSX: ACB OTC: CTTH
EDMONTON, May 22, 2018 /CNW/ – Aurora Cannabis Inc. (“Aurora” or the “Company”) (TSX: ACB) (OTCQB: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) and CTT Pharmaceutical Holdings Inc. (“CTT”) (OTC: CTTH) today announced that Aurora is acquiring an initial 9.14% ownership interest in CTT via way of a non-brokered private placement in the form of a US$1 million 5% convertible debenture. The agreement includes an issuance of warrants enabling to Aurora to increase ownership to 42.5%.
Additionally, the companies announced that, within 60 days, they intend completing a final commercial agreement, expanding the exclusivity agreement, announced first on April 16, 2018, which related to distribution in Canada only of CTT’s novel, patent-protected drug delivery technologies. CTT will now provide Aurora with global exclusivity to develop, manufacture and market CTT’s novel oral thin films wafers. The companies will work jointly towards obtaining Health Canada approval for introduction of the new products on the Canadian market, as well as obtaining commercial access to other international jurisdictions in which Aurora is active.
Clinically-Proven Rapid Onset Drug Delivery Technology
CTT is an Ontario based global leader in the development of dose specific fast dissolving oral thin film wafers that provide a dose specific, smoke-free delivery of medical cannabis or other active ingredients. CTT’s oral thin film wafer is made from FDA approved non-medical ingredients used in several pharmaceutical formulations and provides the effective oral delivery of a specific dose with rapid onset of action within 5-10 minutes after dosing. Clinical research undertaken by CTT indicates the oral wafer delivery of THC into the blood steam was approximately 40% quicker compared to edible form factors, as well as resulted in approximately 28% more THC in the blood stream at peak bioavailability levels.
The investment in CTT reflects our commitment to science-based diversification into higher-margin drug delivery technologies for both the medical and adult consumer use markets. The clinically-proven rapid onset of action of CTT’s wafers is a key differentiator that, we believe, will resonate strongly with physicians, patients and adult use consumers. This provides us with an important competitive advantage in the rapidly growing market segment for smoke-free form factors.
Dr. Pankaj Modi, CEO of CTT, added, “We believe Aurora more than any other LP, provides the global distribution channels, regulatory affairs expertise, scale and manufacturing ability to successfully commercialize this unique technology on a global basis. We are very pleased to have Aurora as a key strategic investor, delivering additional recognition to our product development capabilities, and increasing both our commercial and capital markets visibility.”
Terms of the Investment
Aurora will make an initial US$1 million investment in CTT by way of a non-brokered private placement of convertible debentures (the “Debentures”). The Debentures will have a maturity date of three years from the closing date of the offering (the “Maturity Date”) and will bear interest from the date of closing at 5.0% per annum, payable semi-annually. The Debentures will be convertible, at the option of the holder, into common shares of CTT at any time prior to the close…