Consolidation in Canada's nascent marijuana industry is heating up, with two of the largest players agreeing to the biggest merger seen so far in the sector.
Aurora Cannabis Inc., a Canadian cannabis company based in B.C., just made a $3.2 billion deal with marijuana producer called Medreleaf Corp. This also isn't the first major marijuana merger in the industry as similar moves have been made in Europe and the USA with the objective of cutting costs and increasing the scale of operations. "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", Aurora chief executive Terry Booth said in a statement, reports Toronto City News.
"(Aurora is) targeting mostly Europe for exports. the demand is firmly in place, in terms of their medical market", said Alan Brochstein, founder of cannabis-industry information provider 420 Investor.
Aurora and MedReleaf together expect to produce over 570,000 kilograms per year of cannabis through nine facilities in Canada and two in Denmark.Читайте также: Weather Forecast For The San Francisco Bay Area
Reliable sources cite that the deal will provide United States dollars 29.44 for each MedReleaf Share, an eighteen percent increase over its closing stock price at USD 24.90 last Friday.
Separately on Monday, Aurora's chief rival Canopy Growth said it would buy out a stake in a British Columbia joint venture and also announced a plan to list its shares on the New York Stock Exchange. Aurora offered to buy each MedReleaf share for C$29.44, representing an 18.2 percent premium to MedReleaf's Friday closing price.
Canaccord ranks No. 2 for arranging overall stock sales in Canada this year, mainly from its leadership position in helping cannabis companies on their equity financings.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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