Aurora Investors | Australis


Distribution by Aurora Cannabis Inc. (“Aurora”) of Australis Capital Inc. Units:  Fair Market Value on Distribution 

In connection with the spinout of its subsidiary Australis Capital Inc. (“Australis”) on September 19, 2018 (the “Distribution”), Canadian shareholders received one unit (a “Unit”) for every 34 Aurora shares held as at the record date of August 24, 2018.  Each Unit consisted of one common share (a “Share”) and one share purchase warrant (a “Warrant”) of Australis.  As noted in the prospectus filed by Australis in connection with the spinout, Aurora engaged third-party valuation specialists to make a determination, for Aurora’s own purposes only, of the fair market value of the Units and the breakdown of such fair market value as between the Shares and Warrants comprising the Units. 

For its own purposes, Aurora intends to take the position that each Unit had a fair market value of CAD $0.227 as of the effective time of the Distribution, with the fair market value per Share at such time being CAD $0.186.  This fair market value and allocation were determined in conjunction with third-party valuation specialists for Aurora’s own purposes only, and no representation to holders is made as to the fair market value of the Units, Shares or Warrants at any time.  As noted in the prospectus filed by Australis, this determination was made for Aurora’s own purposes and is not binding on holders or on the Canada Revenue Agency.  All affected holders should consult their own tax advisors in this regard.