After beginning construction on a new retail store in the highly-trafficked West Edmonton Mall last week, Aurora Cannabis Inc. (TSX: ACB; NYSE: ACB) is again looking beyond the borders of Canada for the company’s next major deal.
Aurora just announced a 51% acquisition of Portuguese company Gaia Pharm Lda, which will now be renamed Aurora Portugal Lda.
The specific terms of the deal and prices paid in cash or shares were not disclosed. After the announcement of the Portugal expansion hit news sources, Aurora’s cannabis stock shares rose 3%.
Legislation was passed in Portugal last year allowing for medical cannabis to be prescribed to patients. Earlier this month, the newly-christened Aurora Portugal was granted approval by the Portuguese Health Ministry to build a new medical grade cannabis cultivation facility.
The first phase of construction on that cannabis grow space is projected for Q3 2020, with an expected initial output of 2,000 kg per year upon completion of that phase. When the second phase is eventually finished, Aurora is hoping to double that output to 4,000 kg annually.
Aurora’s VP of Business Development for Europe Dr. Axel Gille issued this statement about the acquisition and new construction project:
International deal making has become a staple for the larger licensed producers in Canada following recreational legalization, and Aurora has been no exception, with the company now operating in 24 nations.
On the Canadian recreational side, Aurora invested $10 million into lifestyle company High Tide (CSE: HITI), which runs the Canna Cabana chain of retail stores.
That chain has expanded at a rapid pace, announcing the opening of a ninth retail store last week that will be located at the site of a former Smoker’s Corner in Calgary.