Cannabis seedlings are seen at the new Aurora Cannabis facility Friday, November 24, 2017 in Montreal. Aurora Cannabis Inc. has signed a non-binding deal to make an investment in Micron Waste Technologies Inc., which makes organic waste treatment systems. THE CANADIAN PRESS/Ryan Remiorz
December 19, 2017 - 5:00 AM
VANCOUVER - Aurora Cannabis Inc. has signed a non-binding deal to make an investment in Micron Waste Technologies Inc., which makes organic waste treatment systems.
Under the terms of the proposed agreement, Micron will install an organic waste digester unit at one of Aurora's growing facilities where the companies will work to optimize the technology for the cannabis industry.
Aurora (TSX:ACB) will have the option to buy additional units for its other facilities at a preferred price once the optimization program is complete and is proven viable.
Micron will also pay Aurora a royalty on the revenue from sale, lease and/or support services deals for digesters sold to marijuana companies.
The proposed deal also gives Aurora the right to subscribe for up to six million shares of Micron at a price of 34 cents per share for a total of $2.04 million, representing about a nine per cent stake in the company.
Micron will issue an additional two million shares to Aurora on the first successful sale of a digester within the cannabis industry
News from © The Canadian Press, 2017