Aurora Cannabis Inc. entered into a nonbinding agreement with Micron Waste Technologies Inc. to invest in its organic waste treatment technology.
The companies will work together on the further development or optimization of the digester technology.
Micron will initially install the system at one of Aurora's cultivation facilities. After the completion of the optimization program, Aurora will have the option to buy the technology from Micron.
Micron's digester technology converts organic waste into clean water that meets municipal effluent discharge standards.
Micron will continue to hold the intellectual property rights pertaining to the technology. Aurora will receive a royalty of 4% on the revenues generated from the sale, lease or support services of the technology to other cannabis-related companies.
Under the terms of the agreement, Aurora will also have the right to subscribe to up to 6 million shares of Micron at a price of 34 Canadian cents apiece for aggregate proceeds of approximately C$2 million, amounting to a 9% interest in the company. After the sale of the first digester, Micron will issue another 2 million shares to Aurora.
