Aurora Cannabis is paying $215 million to acquire medical cannabis producer MedLeaf Therapeutics in a cash-and-stock deal.
The transaction, expected to close by Aug. 31, includes $125 million in cash and $90 million in Aurora common shares, Investing.com reported.
With the acquisition, Edmonton, Alberta-based Aurora expands its medical marijuana portfolio and strengthens its position internationally – particularly in Europe and Australia, where New Zealand-based MedLeaf has established distribution networks.
MedLeaf is “known for its high-potency medical formulations and clinical research programs,” according to Investing.com.
“This strategic acquisition aligns perfectly with our global medical cannabis growth strategy and brings complementary product offerings to our portfolio,” Aurora CEO Miguel Martin said in the company’s filing with the U.S. Securities and Exchange Commission.
MedLeaf’s executive team will join Aurora to help with integrating the businesses and ensure operational continuity.
MedLeaf reported annual revenue of $78 million for its fiscal year, which ended in December, according to a news release.
The company’s two Good Manufacturing Practice (GMP)-certified production facilities have a combined annual capacity of 35,000 kilograms (roughly 38.6 U.S. tons).
Aurora reported year-over-year growth of 39% with annual global medical cannabis net revenue reaching $244.4 million.
Medical cannabis net revenue was $67.8 million in the fourth quarter, a 48% increase from the same period a year ago.
The company attributes the increase in medical marijuana revenue to higher sales in Australia, Germany, Poland and the United Kingdom as well as increased revenue in Canada.
Aurora shares trade as ACB on the Nasdaq and Toronto Stock Exchange.
