Market Overview

Aurora Cannabis Expands Testing Capabilities With Chemi Pharmaceutical Acquisition

Aurora Cannabis Expands Testing Capabilities With Chemi Pharmaceutical Acquisition

Canadian cannabis producer Aurora Cannabis Inc (NYSE: ACB) said Thursday that it entered into a binding share purchase agreement to acquire Ontario-based laboratory operator Chemi Pharmaceutical.

What Happened

The acquisition will be conducted in cash and stock. Aurora did not disclose the amount, but said it would pay Chemi Pharmaceutical shareholders 83,299 shares on closing, which equates to roughly $750,000.

Aurora said it will pay an additional 41,649 shares upon achievement of certain milestones by Chemi. 

Why This Is Important

Chemi Pharmaceutical has a Health Canada Drug Establishment License that allows it to perform certified GMP-compliant quality control analytical testing and has also received a U.S. FDA accreditation. 

Chemi's facility has a strategic location near Pearson Airport in Mississauga, Ontario. It provides specialized cannabis testing for a broad set of parameters such as cannabinoid and terpene content.

What's Next

Following the acquisition, Chemi will be part of Aurora's wholly owned subsidiary Anandia Laboratories. The integration will allow Anandia to expand its analytics capabilities to meet client demands and diversify its testing services, according to Aurora. 

Related Links:

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Posted-In: Anandia Laboratories Cannabis M&A Cannabis Testing Chemi PharmaceuticalCannabis M&A News Markets Best of Benzinga


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