Aurora Cannabis Inc.(TSX: ACB) (OTCQB: ACBFF) announced this morning that the company has entered an agreement to acquire the South American cannabis company ICC Labs Inc. (TSX-V: ICC). Under the terms of the agreement Aurora Cannabis is planning to acquire all of the issued and common shares of their company at $1.95 per shares for a total price of $290 million dollars.
ICC Labs owns significant assets including licenses involved in the cultivation, manufacturing, and distribution of cannabinoid-based products on the South American continent. The company is led by CEO Alejandro Antalich who has 25 years of experience with pharmaceutical companies. Interestingly enough, ICC Labs has focused their operations on the propagation of industrial hemp for the extraction of Cannabidiol (CBD) oil.
A good majority of ICC Labs operations are setup in Uruguay, which was first country in the world to allow the cultivation of hemp for the manufacturing and distribution of CBD derived products. Via their CBD product brand, BIDIOL, the company plans to distribute their products internationally. If the transaction is approved, Aurora Cannabis will also be acquiring a state-of-the-art facility (which is set to be completed in October 2018) with the capacity to product 150,000 kg’s of CBD annually.
ICC Labs is also finishing construction on the first GMP Compliant Scientific Lab in South America to study cannabinoid genetics and future product development.
Terry Booth, CEO of Aurora said in the press release, “ICC is an ideal partner for Aurora to establish leadership in the South American cannabis market, delivering clear first mover advantage on a continent with over 420 million people. ICC and its management team have shown exceptional vision and execution across production, expansion, distribution and product development. The company has a very strong management team with deep connections throughout the continent, which we believe will facilitate successful expansion into all South American markets.”