Two of the largest cannabis companies in Canada have decided to join forces to create one mege force.
Per Bloomberg
Aurora Cannabis Inc. agreed to buy rival MedReleaf Corp. for about C$2.9 billion ($2.2 billion) in stock, the companies said Monday in a statement. The deal will create a producer with the capacity to grow 570,000 kilos (1.26 million pounds) a year of cannabis at nine facilities in Canada and two in Denmark. The merged company will also have distribution networks at home as well as in Europe, South America and Australia.
Canadian marijuana growers are racing to gain market share as Prime Minister Justin Trudeau pushes to legalizerecreational use this year. Aurora is leading the effort to consolidate the industry, having acquired more than 10 targets in the past two years.
Aurora Chief Executive Officer Terry Booth said there will be more consolidation in the industry.
“We’re not done,” he told reporters in Toronto. “Over the next couple weeks you’ll see some more activity from Aurora,” but nothing on the scale of the MedReleaf deal, he added.
Chief Corporate Officer Cam Battley said Aurora’s goal is to “become nothing less than the world’s largest cannabis company.” Aurora sees particular growth opportunities in the European Union.
Aurora’s stock fell 2.1 percent to close at C$7.90 in Toronto, while MedReleaf’s gained 1.7 percent to C$25.26.
Read more about Aurora’s move towards global dominance here