Aurora Cannabis Inc. (ACB.TO) (ACBFF) increased its ownership position in Radient Technologies Inc. (RTI.V) after the company announced another $12 million investment in the oil extraction company. The strategic investment is structured as follows:

Exercise 15,856,321 common share purchase warrants of Radient for $5.8 million in total proceeds

Investment through a private placement in units at $1.37 consisting of one common share of Radient and one common share purchase warrant. Each warrant gives Aurora the right to purchase one common share of Radient for $1.71 for a period of 24 months following closing of the placement. Aurora will be purchasing 4,541,889 units for $6.2 million.

Upon completion of the investment, Aurora will have increased its ownership position in Radient from 8.8% to 19.18% on an undiluted basis (15.87% on a diluted basis).

Radient intends to use the proceeds to accelerate plant capacity expansion and increased throughput at its Edmonton facility, the purchase of land adjacent to this facility for further expansion, including preparations for the broadening range of extraction-based cannabis products that are expected to be permitted under the new Cannabis Act, as well as for working capital purposes.

Aurora Cannabis CEO Terry Booth said, “With multiple Aurora facilities coming online and ramping up production in the coming quarters, as well as the anticipated export of cannabis oils and preparations for the legalization of adult consumer use in Canada, Radient’s planned expansion positions both companies exceptionally well to accelerate revenue growth. This investment reflects our strategy to build a constellation of vertically integrated partners and subsidiaries, and we look forward to jointly pursuing further expansion of market share in this exiting space.”