Edmonton-based Aurora Cannabis Inc. (TSX: ACB; NYSE: ACB) continues its buying spree today by signing a letter of intent to acquire Whistler Medical Marijuana Corporation.
The all-stock deal will see Aurora purchasing all outstanding shares of the privately held Whistler in a deal expected to be worth $175 million by its completion.
That total amount will include staggered payments over time as the organic medical cannabis company hits undisclosed milestones, and will be subject to approval by Whistler shareholders before the deal is completed.
Aurora was established in 2013, becoming an early licensed producer of medical marijuana in Canada, and has been profitable since 2015. The company’s craft products are Fraser Valley Organic Producers Association certified.
Chief Executive Officer Terry Booth stated Aurora would assist in completing a planned update to Whistler’s second production facility in Pemberton, British Columbia on an expedited schedule.
That new schedule will see the additional grow space up and running by this summer. Once that second facility’s planned expansion is completed, Whistler is projected to produce in excess of 5,000 kg of organic dried flower product per year.
Aurora’s Chief Global Business Officer Neil Belot also commented on the acquisition:
Aurora has sought to remain competitive in the industry through a series of recent large scale international acquisitions lately, with the company acquiring all outstanding shares of Mexican cannabis distributor Farmacias Magistrales SA last month.
Back in November, the company additionally purchased Uruguay-based ICC Labs in an all-stock deal valued at $220 million.
While entering talks with beverage giant Coca-Cola to potentially produce and sell CBD-infused drinks, Aurora also managed to land an NYSE listing just a handful of days before recreational marijuana became legal in Canada thanks to the Cannabis Act.