Aurora Cannabis Inc. ACB ACB announced that a wholly-owned subsidiary of the company has closed the sale of its Medicine Hat, Alberta facility (the "Aurora Sun facility") on July 21, 2023 to Bevo Farms Ltd., a wholly-owned subsidiary of Bevo Agtech Inc. The sale of the Aurora Sun Facility was completed via Bevo Farms' acquisition of one of Aurora's wholly-owned subsidiaries. Aurora has a controlling interest in Bevo, a supplier of propagated vegetables and ornamental plants in North America.
Up to $15 million could be payable over time by Bevo Farms to Aurora in connection with the Aurora Sun transaction, based on Bevo Farms successfully achieving certain financial milestones at the Aurora Sun facility.
"I am pleased that this transaction will achieve the dual objectives of improving Aurora's cash flow, while benefiting Bevo as they proceed with the expansion of their business," stated Aurora's CEO Miguel Martin. "Bevo has successfully repurposed the Aurora Sky facility in Edmonton, and we're excited to further support their continued growth. Bevo's acquisition of the Aurora Sun facility further demonstrates the close synergies between our companies, and the value that our partnership creates for shareholders."
Strategic Highlights
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Accelerates Bevo's plans to increase revenue and earnings, which will be fully consolidated in Aurora's results due to Aurora's controlling interest
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Expected reduction of ~$2 million annual carrying costs associated with maintaining the Aurora Sun facility as an idle asset
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