AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) Begins to Integrate Recent Acquisition

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One of our favorite, and indeed one of the most exciting, Canadian Cannabis plays is AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF). We routinely track its activity, and it was just about a week ago that we last mentioned it here on Street Register.

At the time, the company had announced the grant of three permits by the Australian Government, Department of Health, for the importation of cannabis into Australia for research purposes. This week, we wanted to swing back to check in with the company again as it has made another of its frequent updates. This time, pertaining to the story we’ve been following with regard to the company’s takeover of CanniMed.

On March 12, 2018, AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF)  took up 21,309,517 CanniMed Shares representing 86.8% of the total outstanding CanniMed Shares on a fully diluted basis which, together with shares purchased in the market prior to the expiry of the Offer by Aurora, represents 87.1% of the outstanding CanniMed Shares. In consideration for the CanniMed Shares taken up on March 12, 2018, Aurora issued approximately 62.8 million Aurora common shares as share consideration and paid cash consideration of approximately $121.5 million.

With Aurora now owning a controlling interest in CanniMed, integration into the Aurora organization has commenced under the leadership of Andre Jerome, SVP Business Integration. Mr. Jerome is working with the integration section heads at Aurora and their respective counterparts at CanniMed to facilitate a smooth, seamless and rapid integration, and to execute quickly on realizing the strategic synergies identified.

The objective for the integration is to leverage the best practices, capabilities, resources, distribution networks, partnerships and technologies available through Aurora to accelerate development of CanniMed’s strategic initiatives. Conversely, CanniMed’s strong medical presence, science base and product development capabilities will form the foundation of the combined companies’ Medical Cannabis Centre of Excellence. Aurora anticipates that execution on these objectives will drive strong growth of the Company’s activities in the domestic and international medical cannabis markets.

 

 

 

“Having completed our initial uptake for an acquisition we anticipate to be strongly accretive, we are issuing approximately 25% fewer shares than would have been the case under our original offer, had all CanniMed shareholders elected the all-share consideration option,” said Terry Booth, CEO. “Our integration efforts will focus on four key areas to drive further growth: increase production, develop new, commercially valuable intellectual property, drive growth of our international business, and accelerate patient registration in Canada. We are very excited about the combination, and having met with the talented, energetic and motivated team at CanniMed, we are confident of executing the integration to the Aurora Standard.” (Source: Canada Newswire)

The Canadian cannabis market, in the next few years, could be worth anywhere from five to twenty billion dollars a year. Not only has Aurora been preparing for the recreational cannabis market which kicks off in July, but it has also aggressively pushed for expansion outside of Canadian borders to diversify its portfolio. It’s that driving initiative that has made this company one of our favorites in the Canadian marijuana space for a very long time. We’ll be sure to continue looking out for key events. We’ll stay up on any further developments with ACBFF and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free small cap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!

 

Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ACBFF stock, short or long.

 

 

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