Aurora Cannabis Inc. (TSX: ACB) (OTCQB: ACBFF) announced this week that the previously planned acquisition of public company MedReleaf Corp. (TSX: LEAF) has been made official. This merger concludes one of the largest transactions completed by two public companies involved in the cannabis sector.
Under the terms of the agreement between the two companies, shareholders of MedReleaf will receive 3.575 common shares of Aurora for each MedReleaf common share held.
By completing this acquisition, Aurora Cannabis will become capable of delivering an output of more than 570,000 kg of cannabis for the medicinal and recreational cannabis markets in Canada, as well as, to the company’s already established operations in Europe. The integration of MedReleaf also means that Aurora Cannabis now owns two GMP certified facilities.
Based upon advanced analytical data and market research Aurora will now launch its portfolio of premium wellness brands such as San Rafael ’71, Woodstock, and AltaVie. Aurora’s management team believes that their operational cost should fall below $1.00 per gram of dried cannabis with the addition of MedReleaf’s R&D team, management team, and infrastructure.
Terry Booth, CEO of Aurora Cannabis, gave this statement in the press release:
“The combination of MedReleaf and Aurora creates a well capitalized company positioned exceptionally well to generate further shareholder value, driven by the low-cost production of high-quality cannabis products. We will be applying our proven integration methodology, and will continue to execute to the Aurora Standard in capitalizing on the significant opportunities in the domestic and global cannabis industry.”