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Aurora Cannabis Buys Rival MedReleaf In Biggest Cannabis Deal Ever

Legal Pot Sales Will Hit $10 Billion This Year

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Aurora Cannabis Buys Rival MedReleaf In Biggest Cannabis Deal Ever

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Aurora Cannabis Buys Rival MedReleaf In Biggest Cannabis Deal Ever

One Canadian cannabis giant swallows another in the largest merger between two cannabis companies.

In a move to consolidate Canada’s budding cannabis market, two of the country’s largest medical cannabis producers will be merging in what some are calling the biggest cannabis deal ever. According to their definitive arrangement agreement, Aurora Inc. will be acquiring all of MedReleaf Corporation’s issued and outstanding common shares. The agreement was unanimously approved by the boards of directors from both companies.

Canadian cannabis companies have been doing what they can to expand production capacity before federal legalization takes full effect. The latest purchase by Aurora will be the most expensive marijuana acquisition to date.

Deal Highlights

“The combination strengthens our capacity to service the rapidly expanding global medical cannabis markets, and amplifies our early mover advantage,” Aurora Chief Executive Office Terry Booth said in a statement.

MedReleaf agreed to a $2.5 billion all-stock acquisition from their largest rival in Canada’s medical cannabis production industry.  The merging of the two companies will give Aurora the ability to legally produce 1.26 million pounds of cannabis at nine facilities in Canada and two in Denmark.

If the deal is completed, existing Aurora shareholders will own at about 61 percent of the combined company with MedReleaf holders owning 39 percent.

“The likelihood of another bidder emerging with a superior offer is low in our view, given the size of the transaction and the overwhelming support of MedReleaf’s shareholders,” GMP Securities analyst Martin Landry said in a note.

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Prior to the pending deal with MedReleaf, Aurora initiated the largest completed cannabis deal to date with the $1.1 billion acquisition of CanniMed. That move already made Aurora the largest cannabis company in Canada but that hasn’t stopped their series of acquisitions.

In fact, Booth added that the company would not be done acquiring cannabis companies even after the MedReleaf deal goes through. He hinted at “more activity” from Aurora over the next couple of weeks. However, none of the upcoming deals will be as grand as the merger with MedReleaf Corp.

Since Canadian laws allow cannabis to be exported, the company is preparing to expand into other countries. Being that they are already the largest cannabis producer in Canada, the companies next goal is to “become nothing less than the world’s largest cannabis company,” Aurora’s Chief Corporate Officer, Cam Battley said.

Canada’s largest cannabis producer is rapidly expanding with aggressive acquisition strategies. Their latest move serves to increase their current growing capacity as well as their international presence. For the deal to be finalized, the transaction will need two-thirds approval by current MedReleaf shareholders. Aurora has acquired more than 10 other companies in the last two years and it is unlikely that another company will outbid them in the time allotted. Aurora intends to become a global leader in cannabis production. The companies distribution network already extends to countries in Europe like Italy and Australia.

Ab Hanna

Ab is an East Coast editor for Green Rush Daily. He enjoys learning about cannabis and cannabis products through experience and from experts in the industry. His work is also featured in High Times.

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