+ 0.60
+ 0.4%

Aurora To Acquire Organic Cannabis Producer Whistler For $175M

January 14, 2019 9:55 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Aurora To Acquire Organic Cannabis Producer Whistler For $175M

Canada-based Aurora Cannabis Inc. (NYSE:ACB) announced Monday it's entering into a letter of intent to acquire privately-held Whistler Medical Marijuana Corporation.

The all-stock deal is valued at up to $175 million, which also includes future milestone payments related to Whistler reaching certain operational goals.

Whistler Medical Marijuana Corporation is a Canadian certified organic cannabis producer that operates in both medical and adult-use markets. The company was founded in 2013 and was one of the original 10 cannabis producers in Canada. Whistler was also the first company to obtain an organic certification.

Why It's Important

Whistler has two indoor facilities in British Columbia. The company also sells medical cannabis derivatives to Australia and the Cayman Islands.

Whistler is also cash-flow positive since 2015 and has EBITDA margins exceeding 30 percent. The company sells its products by focusing on high-quality organic products, Aurora said in a statement.

What's Next

Whistler's second facility is on track to reach its full capacity, which is expected in September. After that, both facilities will have a combined capacity of 5,000 kilograms per year. Aurora plans to further expand Whistler's international footprint by exploring new export destinations, such as the EU given that the second facility is built in compliance with the EU Good Manufacturing Practice (GMP) standards.

The transaction is subject to certain closing conditions and the approval of the Whistler shareholders.

Aurora's stock traded at $6.70 at time of publication, up 5.4 percent.

Related Links:

Aurora Cannabis Issues Below-Consensus Q2 Revenue Guidance

Aurora Cannabis To Supply Medical Cannabis To Luxembourg

Related Articles

Viridian Cannabis Deal Tracker: 4 Transactions To Open 2021

The Viridian Cannabis Deal Tracker is an information service that monitors capital raise and M&A activity in the legal cannabis industry. Each week the Tracker analyzes/aggregates all closed deals and allocates each transaction to one of twelve key industry sectors in which the deal occurred (from Cultivation to Brands), the region in which the deal occurred (country or U.S. read more

Viridian Chart Of The Week: Who Gains From The Georgia Senate Flip?

This chart shows the percent change in the stock prices of the 5 largest U.S. and Canadian cannabis companies by market cap from the market close on January 4, 2021 (the day before the Georgia senate election) to January 8, 2021 (3 days after the election).  read more

Cannabis Stock Gainers And Losers From January 15, 2021

GAINERS: Next Green Wave Holdings (OTCQX: NXGWF) shares closed up 17.73% at $0.51 read more

Cantor Analyst Raises Aphria And Tilray Price Targets Amid Merger

Cantor Fitzgerald analyst Pablo Zuanic expressed disappointment by Aphria Inc. (TSX: APHA) (NASDAQ: APHA) quarterly results in an analyst note published Friday. read more

Jay-Z Touts 'End Of Cannabis Prohibition' As Roc Nation Finalizes SPAC Deal With Caliva, Left Coast Ventures

A consortium made up of CMG Partners Inc., Left Coast Ventures Inc. and Shawn Carter (Jay-Z) —with his company Roc Nation — has finalized its previously announced transaction with Subversive Capital Acquisition Corp. (OTCQX: SBVCF). read more