Aurora Cannabis CEO Terry Booth believes Radient’s technology “will provide a substantial competitive advantage for us in addressing the high-growth concentrates market”
SmallCapPower | June 5, 2017: Aurora Cannabis Inc. (TSXV: ACB) and Radient Technologies (TSXV: RTI) Monday jointly announced what they considered the successful completion of the Joint Venture Research Activity, confirming the effectiveness of Radient’s proprietary MAP Technology and associated continuous flow design for extracting cannabinoids from dried cannabis.
Back on December 14, 2016, the two companies entered into Memorandum of Understanding to develop and commercialize RTI’s cannabinoid extraction technology. The first steps of the joint venture involved assessing the feasibility of applying Radient’s proprietary technology for the extraction of cannabinoids from cannabis, including the establishment of parameters of extraction yields, recovery rates of available cannabinoids, purity of the extracts obtained, and the determination of cannabinoids and terpene profiles.
Key findings of the study included:
- Consistently high extraction efficiencies of up to 98% (quantitative recovery) were observed compared to 80 – 85% typical for conventional technologies;
- Exceptionally short processing times of as little as five minutes were achieved, as compared to approximately 6 hours for currently used commercial technologies;
- Consistently high purity levels were observed for the extracts produced, at least on par with those achieved using conventional methods;
- The research data indicate that throughputs in excess of 1,500 kg per day can potentially be achieved using Radient’s proprietary large-scale continuous-flow MAP extractor, many times higher than what can be achieved using conventional methods
Based on these results, both Radient and Aurora Cannabis have agreed to negotiate an exclusive development and commercialization agreement for the use of Radient’s technology, and to continue their exclusive Joint Venture for additional scientific Research and Development of cannabis and hemp products.
Aurora Cannabis CEO Terry Booth believes Radient’s technology “will provide a substantial competitive advantage for us in addressing the high- growth concentrates market,” and its exclusive use of Radient’s technology positions Aurora Cannabis as the clear leader in this field. Shares of Aurora Cannabis eased 5% to $2.11, while Radient Technologies stock dropped 15% to $0.62 on Monday on what was, generally speaking, a down day for marijuana-related stocks in Canada.
As part of the Memorandum of Understanding Aurora Cannabis agreed to invest up to $2 million into Radient by means of a convertible debenture and followed up by acting as lead investor in the subsequent brokered private placement for $1.2 million. Radient revealed today that it will make the first quarterly interest payment of $50,000 to Aurora Cannabis through the issuance of an additional 104,167 common shares of RTI and 104,167 common share purchase warrants to Aurora Cannabis in satisfaction of the interest payment. Each common share purchase warrant will entitle Aurora Cannabis to acquire one additional common share of Radient at an exercise price of $0.48 per share. Thus, Aurora Cannabis will have a significant stake in the success, or failure, of Radient Technologies going forward. Should RTI’s technology prove to be a game changer in this industry, Aurora Cannabis could indeed have a leg up on its competitors in the medicinal marijuana space.
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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