Aurora Cannabis Inc (NYSE: ACB)(TSX: ACB) started the week off with a major announcement. The company revealed that they had entered into an acquisition agreement to purchase all outstanding shares of privately held Whistler Medical Marijuana Corporation, a significant cannabis brand in British Columbia.
Aurora will be paying over $175 million in an all-share transaction to acquire the company, along with specific milestone payments for future performance written into the agreement.
Founded in 2013, Whistler is known for it’s premium medical and recreational cannabis among its patients. The company also holds the distinction of being one of Canada’s original ten licensed marijuana producers and was the first producer to also obtain organic certification for all their products.
“This transaction adds an iconic, organic certified BC-based brand with exceptional traction and a significant price premium in both the medical and retail markets,” said Aurora CEO Terry Booth. “We intend to accelerate the completion of Whistler’s Pemberton expansion project, and leverage our domestic and international distribution channels to increase market reach for their exceptional products. Whistler has established leadership in the organic cannabis market, and we look forward to welcoming Christopher and his team to the Aurora family.”
Whistler owns two indoor production facilities, one located in the city of Whistler, British Columbia and one located only a 20-minute drive away. Both facilities are expected to have a combined output of 5,000 kg per year. The company mainly sells medical cannabis derivatives but also exports their products to Australia and the Cayman Islands.
“With its commitment to the highest product quality standards, as well as its large footprint in both the Canadian and international cannabis markets, Aurora is the ideal partner for Whistler to enhance our growth and margin profile,” added Whistler CEO Christopher Pelz. “We feel there is a strong cultural fit, and believe that Aurora is the right home for us to maintain our organic craft cultivation identity, while being able to leverage the resources and capabilities of a large and rapidly growing global company.”
Aurora shares increase 6.3 percent in response to the news, closing the day at CAD 9 per share. Today’s been a good day for cannabis shares throughout the market, however, as other industry giants such as Tilray (NASDAQ: TLRY) and Canopy Growth (TSE: WEED) increase 4.3 and 11.2 percent respectively. In comparison, the Dow Jones dipped 86 points, or 0.4 percent today.
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 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
Whistler Medical Marijuana Company Profile
Whistler Medical Marijuana Corporation produces organic medical cannabis or marijuana for patients. It provides dried cannabis and cannabis oil. The company grows organic medical cannabis in soil without the use of chemicals. The company was incorporated in 2013 and is based in Whistler, Canada. –Bloomberg
