Aurora Cannabis Buys Rival MedReleaf In Biggest Cannabis Deal Ever

Aurora Cannabis Buys Rival MedReleaf In Biggest Cannabis Deal Ever

In a move to consolidate Canada’s budding cannabis market, two of the nation’s biggest medical cannabis producers will be merging in what some are calling the largest cannabis deal ever. According to their definitive arrangement agreement, Aurora Inc. will be acquiring all of MedReleaf Corporation’s issued and outstanding common shares. The agreement was unanimously approved by the boards of directors from both companies.

Canadian cannabis companies have been doing what they can to expand manufacturing capacity before federal legalization takes full effect. The latest purchase by Aurora are the most expensive marijuana acquisition to date.

Deal Highlights

“The combination strengthens our capability to support the rapidly expanding global medical cannabis markets, and amplifies our early mover advantage,” Aurora Chief Executive Office Terry Booth said in a statement.

MedReleaf agreed to a $2.5 billion all-stock acquisition from their biggest rival in Canada’s medical cannabis production industry.   The merging of the two companies will give Aurora the ability to legally produce 1.26 million pounds of cannabis at nine centers in Canada and two in Denmark.

If the deal is completed, existing Aurora shareholders will have at about 61 percent of the joint company with MedReleaf holders owning 39 percent.

“The likelihood of another bidder emerging with a superior offer is reduced in our opinion, given the size of the transaction and the overwhelming support of MedReleaf’s shareholders,” GMP Securities analyst Martin Landry stated in a note.

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Before the pending deal with MedReleaf, Aurora initiated the biggest completed cannabis deal to date with all the $1.1 billion acquisition of CanniMed. That move already made Aurora the biggest cannabis business in Canada but that hasn’t  stopped their series of acquisitions.

In actuality, Booth added that the firm would not be done acquiring cannabis companies even after the MedReleaf deal goes through. ” was hinted at “ more activity by him from Aurora. However, none of the approaching deals will be as grand as the merger with MedReleaf Corp..

Being that they are already the biggest cannabis manufacturer in Canada, the companies next goal is to “become nothing less than the planet’s biggest cannabis firm,” Aurora’s Chief Corporate Officer, Cam Battley stated.

Canada’s biggest cannabis manufacturer is rapidly expanding with aggressive acquisition strategies. Their latest move serves to increase their current growing capacity as well as their international presence.   For the deal to be finalized, the transaction will need two-thirds acceptance by present MedReleaf shareholders. Aurora has acquired more than 10 other companies in the last two decades and it is not likely that another firm will outbid them at the time allotted. Aurora intends to be a leader in cannabis production. The companies distribution network already extends to countries in Europe like Italy and Australia.

Released at Mon, 14 May 2018 23:02:49 +0000

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