Aurora Cannabis Inc (NYSE: ACB)(TSX: ACB) announced today that it had received regulatory approval from Uruguay officials regarding their previously announced plan to acquire ICC Labs (TSX-V: ICC).
The agreement, which saw Aurora agree to purchase all outstanding ICC shares at $1.95 each, is estimated to be a $290 million transaction.
The purchase of ICC Labs puts Aurora in the position of being the industry frontrunner in Latin America, which has a total market size of more then 650 million people across South and Central America, the Caribbean, and Mexico (the latter of which saw it’s Supreme Court rule against the existing marijuana ban a few weeks ago).
Uruguay, where ICC is based out of, was the first country in the world to legalize cannabis for adult use and boasts a solid portfolio of high-quality, low-cost production facilities within Uruguay’s free trade zone. The company’s state-of-the-art assets are also GMP compliant, something no other facility in the nation can boast.
“The transaction combines two pioneering cannabis companies with fully aligned international growth ambitions, immediately positioning Aurora as the market leader in Latin America, an area with well over 650 million people,” said Aurora CEO Terry Booth. “Not only does ICC have substantial low cost, high-quality production capacity, it is the first company in Latin America which has completed a GMP compliant extraction facility, which will play an important role in supplying higher-margin CBD-based products for the global cannabis and wellness markets.”
At the moment, ICC Lab’s production capacity of both cannabis and hemp is estimated at over 450,000 kg per annum, a considerable addition to Aurora’s current output. This is split over two operational greenhouses totaling 92,000 square feet, and three outdoor grow sites with a total potential area of 800 acres (590 of which are in Uruguay and will be used for cultivation towards the end of 2019).
Additionally, Uruguay is the only country where regulations allow cultivation of CBD-rich hemp on a commercial level, letting producers grow hemp with THC concentrations of up to 1% – a significant increase in potency compared to global competitors.
“The complementary nature of our two organizations makes this transaction an ideal fit that will allow us both to realize our ambitious growth strategies. We’re excited to announce our upcoming official grand opening of the first state-of-the-art laboratory in Latin America on November 28th,” said ICC CEO Alejandro Antalich. “This facility based in Uruguay is focused on the development of pharmaceutical grade products derived from cannabis and hemp. With our Latin American facilities coming online, as well as multiple supply and distribution agreements in large international markets in place, we believe that Aurora’s resources, innovation capabilities, and broad global distribution networks represent an ideal partner to accelerate our growth.”
The acquisition of ICC Labs is another feather in Aurora’s cap and cements its position as a soon to be the frontrunner in the global cannabis market.
Aurora Cannabis Company Profile
Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 20 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution. – Aurora
ICC Labs Company Profile
ICC is a fully licensed producer and distributor of medicinal cannabinoid extracts, adult usage cannabis and industrial hemp products in Uruguay as well as a fully licensed producer of medicinal cannabis in Colombia.
ICC has active operations in Uruguay, and is focused on becoming a worldwide leading producer of cannabinoid extracts, giving support and promoting responsible use for medicinal purposes, backed by scientific research and innovation, while following strict compliance with standards for quality and safety. – ICC Labs