Canada’s second largest cannabis company, Aurora Cannabis, has agreed a deal to buy industry rival CanniMed Therapeutics in a deal worth CAD$1.1bn, creating the world’s largest cannabis player in the process.
As a result of the acquisition, the total value of cannabis deals has already doubled 2017’s levels this year, now standing at $1.2bn.
“We are very pleased to have come to terms with CanniMed on this powerful strategic combination that will establish a best-in-class cannabis company with operations across Canada and around the world,” said Terry Booth, CEO of Aurora. “Market recognition of Aurora’s continued performance and strategy execution since we first announced our intention to acquire CanniMed allows us to share that benefit directly with CanniMed shareholders by increasing the offer price, as well as by offering a cash component.”
With the legalisation of recreational use of marijuana set to come in the summer, the industry is set up for a busy year, with this marking the first significant transaction of 2018.
“This is an excellent outcome for both Aurora’s and CanniMed’s shareholders after a hard-fought and diligently negotiated process,” said Cam Battley, Aurora’s Chief Corporate Officer. “Together, under the Aurora banner we’ll continue to invest in domestic and international growth, and continue executing on our strategy of building the most dynamic, innovative integrated cannabis company in the world.”
The deal comes one a month after Aurora’s investments into both Cann Group, a leading Australian cannabis company, and Radient technologies, a company that extracts natural compounds from a range of materials using microwave assisted processing.