EDMONTON and MARKHAM, Ontario – Canadian cannabis company Aurora Cannabis Inc. announced Monday that it will acquire cannabis producer Markham-based MedReleaf Corporation in an all-stock deal worth $3.2 billion.
“This is a transformational transaction that brings together two pioneering cannabis companies, both committed to high technology, high quality and low cost production, to create a powerful platform for accelerated growth and success on a global scale,” Terry Booth, chief executive officer of Aurora Cannabis said in a press release.
“Our complementary assets, strategic synergies, and strong market positioning will provide us with critical mass and an excellent product portfolio in preparation for the adult consumer use market in Canada,” Booth continued. “Equally, the combination strengthens our capacity to service the rapidly expanding global medical cannabis markets, and amplifies our early-mover advantage. We are very excited about the combination of our respective science and R&D teams, which will position us exceptionally well for the development of high value-added products, addressing as yet unmet needs in the medical markets, and driving continued innovation for the adult consumer use market.”
The announcement from both companies outlined combined strengths and expanded potential to establish “accelerated growth on a global scale.”
“MedReleaf was founded on the belief that by striving to be the Medical Grade Standard and bringing the highest level of quality and rigor to the cannabis industry, we would produce safe, consistent, and effective products that help improve the quality of life of our patients,” said MedReleaf Chief Executive Officer Neil Closner added, “and, in time, provide an unrivaled experience for the adult use consumer. This, in turn, would drive growth and opportunity for our business.
“By combining with Aurora, an integrated producer with an exceptionally strong track record for execution, and deep domestic and international distribution capabilities, we will be ideally positioned to set the global standard for our industry at a pace that will be difficult to match,” Closner said further.
According to BNNBloomberg.com, the mega acquisition would result in combined market capitalization of more than $7 billion, based on the close of trading on last Friday.
Aurora’s Booth was quoted at a press conference and said, “If we don’t do this now, we’d be doing it later at a higher price,” Booth told reporters at a news conference in Toronto late Monday morning. “It had to be done, and we’ve talked about it for a long time. It was about time we got it done.”
Video courtesy CityNews Toronto