Aurora Cannabis Inc. (TSX: ACB) (OTCQB: ACBFF) announced yesterday a binding term sheet that states Aurora Cannabis intends to acquire the privately held cannabinoid genetics, testing, and R&D company Anandia Labs in exchange for $115 million in shares of the company.
Anandia Labs is licensed by Health Canada and is focused on cannabis based biochemistry and genomics. The company seeks to research the medicinal side of cannabinoids found in the cannabis plant. The company is studying the genetics of the plant to be able to develop patentable varieties that can be used for specific ailments. The company is also offering analytical testing to the public to identify cannabinoids, terpenes, pesticides, heavy-metals, and residual solvents to ensure product is safe and effective.
Aurora Cannabis looks to work hand and hand with the Anandia to expand the company’s R&D, product testing facilities, and product development facilities to meet Canadian and international demand for cannabinoid based products. Anandia Labs team includes CEO Jonathan Page, PHD, and COO Jon Coleman, PhD, which bring a over 20 years of experience in genetics and independent laboratory testing in other industries.
The partnership seems mutually beneficial for both parties. Aurora Cannabis will be gaining a knowledge base and the ability to develop patentable genetics and strains for their product line whereas, Ananida Labs is being awarded with a partner with what seems to be unlimited resources to expand the company’s operations.
“Terry Booth CEO of Aurora Cannabis gave this statement in the press release:This is a transformative acquisition that expands our science capabilities in the upstream segment of the seed-to-sale cannabis value chain, significantly boosting plant-based innovations in cultivation, enabling accelerated product development, and, ultimately, enhancing our margin profile going forward.”