When it comes to the occurrence of frequent developments of a significant nature, AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) doesn’t have many peers in the Canadian cannabis business, and now, it has even fewer, after a deal to acquire MedReleaf Corp (OTCMKTS:MEDFF) has come to light.
Aurora has been an unstoppable force, between building its own cannabis production capacity up to huge levels with its new and planned facilities, and attaining new assets and properties via acquisition. It has been a pleasure to watch, and this week, another domino has fallen.
AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) entered into a definitive arrangement agreement whereby Aurora intends to acquire all of the issued and outstanding common shares of MedReleaf Corp (OTCMKTS:MEDFF) in an all-share transaction valued at approximately $3.2 billion (CAD) on a fully diluted basis.
The proposed Transaction brings together two of Canada’s premier cannabis companies with fully-aligned strategic visions and production philosophies, as well as complementary assets, distribution networks, products, and capabilities.
The combined entity would have a total funded capacity of over 570,000 kg per year of high-quality cannabis production, through eleven facilities both in Canada and abroad. Aurora’s automated greenhouses are expected to deliver industry-leading efficiency and low production costs, and MedReleaf’s high-yield cultivation is expected to further enhance productivity and reduce costs across the combined entity’s facilities.
We have covered both of these companies as they have established distribution agreements with Alberta’s Alcanna (formerly Liquor Stores), Quebec’s SAQ, Pharmasave and Shoppers Drug Mart in Canada, among others. Additionally, the companies have a rapidly growing international footprint through a network of in-country sales and distribution capabilities and supply and licensing agreements on five continents, including countries such as Germany, Italy, Brazil and Australia. Both companies are actively engaged in initiatives to further expand their international activities.
“This is a transformational transaction that brings together two pioneering cannabis companies, both committed to high technology, high quality and low cost production, to create a powerful platform for accelerated growth and success on a global scale,” said Terry Booth, CEO of Aurora. “Our complementary assets, strategic synergies, and strong market positioning will provide us with critical mass and an excellent product portfolio in preparation for the adult consumer use market in Canada. Equally, the combination strengthens our capacity to service the rapidly expanding global medical cannabis markets, and amplifies our early-mover advantage. We are very excited about the combination of our respective science and R&D teams, which will position us exceptionally well for the development of high value-added products, addressing as yet unmet needs in the medical markets, and driving continued innovation for the adult consumer use market.”
Neil Closner, CEO of MedReleaf, added, “MedReleaf was founded on the belief that by striving to be the Medical Grade Standard and bringing the highest level of quality and rigor to the cannabis industry, we would produce safe, consistent, and effective products that help improve the quality of life of our patients and, in time, provide an unrivaled experience for the adult use consumer. This, in turn, would drive growth and opportunity for our business. By combining with Aurora, an integrated producer with an exceptionally strong track record for execution, and deep domestic and international distribution capabilities, we will be ideally positioned to set the global standard for our industry at a pace that will be difficult to match.” (Source: PR Newswire)
We’ll keep banging the drum for Aurora as long as it continues to be one of the most aggressive players in the Canadian cannabis space, and thus far, it has demonstrated a consistent take-no-prisoners approach to growth. 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.