Aurora Cannabis Inc. ACB ACB announced the completion Monday of its all-share acquisition of the privately held Whistler Medical Marijuana Corporation, an organic cannabis company and one of Canada's first 10 licensed producers.
Aurora's acquisition comes via a sale with Cronos Group Inc. CRON for approximately 19 percent of Whistler's issued and outstanding common shares. The agreement is for approximately CA$175 million ($131.3 million).
Why It’s Important
Under the terms of the agreement, Aurora obtains all the issued and outstanding shares of Whistler. The acquisition adds additional high-quality products to Aurora’s medical and adult use product line and gives the company a stronger presence on the west coast of Canada.
In addition to the west coast, Whistler has a known presence in provinces including Ontario, British Columbia, Saskatchewan and the Yukon, with product requests in Alberta and Manitoba.
The acquisition makes Aurora the owner of Whistler's two indoor production facilities, one in Whistler, British Columbia, and the other in nearby Pemberton. The Pemberton facility is expected to reach full capacity by summer 2019, producing 5,000 kg of product per year.
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What’s Next
Aurora said it intends to use its experience in EU GMP compliance to fast-track certification of the Whistler facility for global brand leveraging.
"Applying certain of our best practices to the Whistler cultivation protocols, we anticipate an increase in capacity of the Pemberton facility beyond the stated 5,000 kg annual production target," Aurora CEO Terry Booth said in a statement.
"Furthermore, in pursuing EU GMP certification, we expect, once certified, to offer Whistler's premium organic flower and derivative products in the much higher-margin EU medical cannabis market, further increasing the accretive nature of this transaction."
Related Links:
Cronos Group's Revenue Nearly Triples In Q3
Aurora Cannabis Announces More Leadership Changes, Exec Appointments
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