Aurora Cannabis has agreed to pay C $1.1 billion ($852 million USD) for CanniMed and will now be the world’s largest cannabis producer as both the Canadian and international markets grow.
Cremona, Alberta- While the cannabis industry’s growth in the United States is being slowed down by federal legal obstacles, this does not appear to be the case with our northern neighbors.
Canada’s second-largest marijuana maker has just struck a deal to become even bigger. Aurora Cannabis has agreed to buy CanniMed, one of its competitors, for C $1.1 ($852 million USD). Based on market value, this will make Aurora Cannabis the largest marijuana company in the world.
The deal comes after Aurora and CanniMed went through months of tense negotiations.
Aurora is now preparing to increase its production capacity in order to meet the growing demand in both Canada and across the world as other countries approve the use of medical marijuana.
“The action is where the medical cannabis export markets are, which are much larger than Canada,” said Chris Damas, editor of the BCMI Cannabis Report according to Reuters. “CanniMed has patents, they have relationships with different universities, research and clinical trials, and export relations with other countries, and Aurora wants to add to their own relationships in Europe.”
Canadian Prime Minister Justin Trudeau made cannabis legalization a prominent issue while campaigning for the job. Recreational sales of cannabis are expected to begin in July for adults 18 and over.