Aurora Cannabis to Present Far more Organics with Acquisition

[ad_1]

Aurora and Whistler Sign Letter of Intent

Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) shares enjoyed a almost six% pop in value in today’s trading following the organization announced the completion of a letter of intent with Whistler Healthcare Marijuana Corporation. The Edmonton-primarily based cannabis organization will obtain all the issued and outstanding shares of Whistler in an all stock deal.

All-Share, $175M Transaction

Taking milestone payments into account, the all-share transaction will total roughly $175 million in exchange for Whistler’s privately-held shares.

Aurora’s Tactic

As soon as closed, Aurora will get a host of premium, differentiated and organic-certified merchandise for each health-related and adult-use markets. Furthermore, adding Whistler will strengthen Aurora’s position in the west coast marijuana market place.

The private organization is positioned in Whistler, British Columbia. Following the company’s accomplishment with award-winning certified BC bud, Aurora shareholders hope to profit from the prosperous brand.

What is Aurora Obtaining?

Whistler has a substantial following amongst individuals and recreational shoppers for their premium cannabis merchandise. Beyond that, on the other hand, what is Aurora having for their $175 million?

Iconic association

Whistler, British Columbia welcomes more than two.7 million guests every single year, regularly making sure it is a top rated tourist spot globally. Whistler’s brand bootstraps from that status, and hence resonates strongly across each Canadian and international markets.

Initial mover benefit

Soon after its founding in 2013, Whistler became 1 of Canada’s original ten licensed producers. Furthermore, it was the initially licensed producer to reach organic certification and sell certified-organic cannabis merchandise.

Moreover, the Fraser Valley Organic Producers Association (FVOPA) certifies Whistler’s merchandise. Whistler constructed their second facility in compliance with EU GMP requirements. That benefit will allow Aurora to provide certified organic marijuana merchandise to the burgeoning European market place.

Whistler has a massive-scale cold-water extraction technologies distinct from any other producer, which produces a host of organic-certified merchandise.

Two facilities

Whistler runs two indoor licensed cannabis production facilities. The initially is positioned in Whistler, British Columbia. The second is a new objective-constructed, state-of-the-art facility in the identical region. They anticipate the latter will attain complete-capacity in Summer season 2019 and will bring combined production capacity a lot more than five,000 kg annually.

Expanded international footprint

Whistler serves international markets that will expand Aurora’s footprint. Promoting in each Australia and the Cayman Islands currently, Aurora plans to use its in depth encounter in establishing EU GMP certified operations to develop Whistler’s international export possibilities.

Great margins

Considering that 2015, Whistler has posted constructive money flows. The market place appears to accept larger pricing from Whistler in exchange for regularly higher good quality, organic item. Certainly, its promoting costs are up to 50% larger than prices in the typical Canadian health-related market place.

In depth choice

Whistler delivers more than 30 flower varieties and oils, from a 150 strain genetic bank.

What does Aurora’s Management Say?

“This transaction adds an iconic, organic certified BC-primarily based brand with exceptional traction and a substantial value premium in each the health-related and retail markets.” Terry Booth, CEO of Aurora

“We intend to accelerate the completion of Whistler’s Pemberton expansion project and leverage our domestic and international distribution channels to improve market place attain for their exceptional merchandise. Whistler has established leadership in the organic cannabis market place, and we appear forward to welcoming Christopher and his group to the Aurora household.” Christopher Pelz, CEO, and Founder of Whistler.

Pelz added, “With its commitment to the highest item good quality requirements, as properly as its massive footprint in each the Canadian and international cannabis markets, Aurora is the perfect companion for Whistler to improve our development and margin profile. We really feel there is a sturdy cultural match, and think that Aurora is the correct residence for us to retain our organic craft cultivation identity although getting capable to leverage the sources and capabilities of a massive and quickly increasing international organization.”

Neil Belot, Aurora’s Chief International Business enterprise Improvement Officer also stated, “Whistler, the longest operating certified organic cannabis producer in Canada, has an exceptional track record constructed on the constant delivery of premium user experiences. This has resulted in strongly-rated merchandise that command amongst the highest costs in the Canadian adult customer use business, targeting the premium organic craft segment in each the customer and health-related markets. Moreover, as the only cannabis producer in the globe-renowned resort town of Whistler, British Columbia, the organization has created broad brand appeal, each across Canada and internationally.”

For an intro to investing in weed stocks, verify out this hyperlink.



[ad_2]

Latest posts