City signs MOU with Aurora Cannabis Inc. subsidiary
Definitive agreement could lead to long-term power sale, 450 new jobs
Medicine Hat - City of Medicine Hat has signed a Memorandum of Understanding (MOU) with a subsidiary of Aurora Cannabis Inc., confirming the parties’ mutual interest in seeing Aurora develop and operate a cannabis production and processing facility in Medicine Hat.
The MOU includes non-binding terms and a general understanding of potential transactions, including a prospective 10-year, 42 MW energy supply agreement.
“With Aurora, we look forward to welcoming a growing international company committed to creating significant employment in our city,” said Mayor Ted Clugston. “Medicine Hat's stable and reliable cost-competitive electricity and business friendly environment are attracting high-technology operations, such as Aurora Sun. The Memorandum of Understanding signals our intention to work with Aurora to arrive at a mutually beneficial agreement that will best serve the residents of Medicine Hat.”
A fair agreement would provide significant benefit to all parties:
- The City of Medicine Hat would secure a long-term, large-sized utilities customer, helping to offset potential risks due to future market changes and providing long-term value to the residents of Medicine Hat.
- The community would see approximately 450 permanent jobs.
- Aurora would have access to stable, cost competitive utility rates.
“We are grateful to the City of Medicine Hat, which has proven to be a very agile, capable and pro-active partner in making this project possible,” said Terry Booth, Aurora CEO. “We look forward to establishing ourselves both as an important local investor and employer, with more than 450 full-time jobs anticipated, and as a leading corporate citizen.”
The Aurora opportunity came as a result of the City’s investment attraction efforts through Investment Medicine Hat. Conversion of this opportunity into a tangible investment continues to be fostered by the City’s internal Development Investment Readiness Team (DIRT).
“City Council has established Economic Vitality as a current strategic priority, focused on growing and diversifying the economy and increasing jobs,” said Clugston. “This announcement is evidence of Council’s continued commitment to add value to our economic base to the benefit of our residents.
For media interviews, please contact:
City of Medicine Hat
Director, Investor Relations and Corporate Development
Aurora Cannabis Inc.