Cash-rich Aurora Cannabis is steamrolling ahead with its aggressive domestic and international expansion plans, snapping up a leading international greenhouse design company and a late-stage marijuana production applicant in Quebec.
Those deals came days after Aurora commenced a hostile takeover attempt of rival producer CanniMed Therapeutics in what could be the largest takeover in the industry to date.
CanniMed, however, urged shareholders not to take action, saying Aurora’s offer is based on an “inflated” share price.
Aurora – traded on the Toronto Stock Exchange under the symbol ACB – has seen its stock skyrocket 229% since September.
Separately, Aurora is buying privately owned Canadian greenhouse company Larssen for an undisclosed sum. Larssen is involved with over 15 cannabis industry clients globally, including five Canadian licensed producers, according to a news release.
Aurora plans to leverage its ownership of Larssen to pressure other cannabis producers to enter partnerships, CBC News reported.
Meanwhile, Aurora’s recently announced CA$25 million ($18 million) acquisition of Quebec-based H2 Biopharma will result in the Alberta company’s fourth production facility in Canada and second in Quebec.
What you need to know:
- Aurora said it believes there is a “high likelihood” it will reach the required 66?% threshold required for the CanniMed takeover to be successful.
- Quebec’s H2 aims to complete a 48,000-square-foot cannabis production facility near Montreal this year.
- H2’s property has infrastructure to support expansion beyond the scale of Aurora’s massive 800,000-square-foot Aurora Sky facility in Alberta.
- Larssen is on pace to generate approximately CA$6 million in revenue this year.
- Aurora’s wholly owned subsidiary BC Northern Lights (BCNL) made a deal for its home cultivation systems to be sold across Canada by Namaste Technologies.
- Aurora anticipates home cultivation will become an increasing segment of the market, especially in provinces setting up a provincial monopoly with a small number of retail stores.
https://mjbizdaily.com/aurora-cannabis-goes-ambitious-buying-spree/
