Just a few days ago, Aurora Cannabis Inc (TSE: ACB)(NYSE: ACB) announced that it was solidifying its international presence through securing agreements with both the Luxembourg government as well as Mexico’s only licensed cannabis importer.
Today, however, Aurora took it a step further, announcing that the firm had decided to purchase Mexican distribution giant Farmacias Magistrales in a move that would further cement the cannabis-giants hold over the North American market.
Farmacias holds the distinction of being Mexico’s only federally licensed importer of raw materials containing THC, while also having all the necessary prerequisite facilities and permissions to distribute medical cannabis products in the country. Back on December 7th, Aurora announced that they were shipping medical cannabis to Farmacias, which would have its products exposed to over 80,000 retail locations as well as 500 hospitals and pharmacies throughout the nation.
“This transaction positions Aurora with exclusive access to supply THC-containing medical cannabis to a large market of more than 130 million people, while also enabling us to capture the full margin of the medical cannabis we sell there. Farmacias has a large distribution network of both retail outlets and pharmacies, which will enable us to quickly scale up our operations across Mexico,” said Aurora CEO Terry Booth. “Integrating Farmacias with our operations in Canada and Latin America will not only accelerate growth, it will build substantial long-term shareholder value.”
Under current regulations regarding the Mexican medical marijuana market, cultivating cannabis domestically, along with importing or selling dried flower products is currently illegal, although the Supreme Court did rule that use of marijuana by citizens is indeed legal in a decision that will be applied nationwide. As the only legal importer in the country, Farmacias is poised to have a captive market in a nation of almost 130 million people, and is an acquisition that Aurora hopes will yield a tremendous return on investment in the coming years.
“This transaction validates our work over the last four years toward obtaining a portfolio of exclusive licenses in Mexico, a complicated process which we have now completed successfully,” added Cesar Vargas Dominguez, Farmacias’ Commercial Director. “Aurora is our partner of choice because of its production capacity, global reach, product quality, patient-first culture, and commitment to a science-based approach to medical cannabis. We look forward to becoming part of the Aurora family and executing on the Mexican medical cannabis opportunity.”
Shares of Aurora Cannabis have stayed relatively the same, inching upwards less than one percent in today’s trading session. Shares did surge in value back on December 7th when Aurora first announced it was shipping to Mexico, and has stayed relatively the same since.
Aurora Cannabis Inc Company Profile
Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 22 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