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 just after the firm announced the completion of a letter of intent with Whistler Healthcare Marijuana Corporation. The Edmonton-primarily based cannabis firm 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.
As soon as closed, Aurora will achieve a host of premium, differentiated and organic-certified goods for each healthcare and adult-use markets. In addition, adding Whistler will strengthen Aurora’s position in the west coast marijuana industry.
The private firm is positioned in Whistler, British Columbia. Following the company’s results with award-winning certified BC bud, Aurora shareholders hope to profit from the prosperous brand.
What is Aurora Acquiring?
Whistler has a substantial following amongst individuals and recreational customers for their premium cannabis goods. Beyond that, nonetheless, what is Aurora having for their $175 million?
Whistler, British Columbia welcomes more than two.7 million guests every single year, regularly making sure it is a best tourist spot globally. Whistler’s brand bootstraps from that status, and as a result resonates strongly across each Canadian and international markets.
1st mover benefit
Just after its founding in 2013, Whistler became a single of Canada’s original ten licensed producers. In addition, it was the initially licensed producer to realize organic certification and sell certified-organic cannabis goods.
Moreover, the Fraser Valley Organic Producers Association (FVOPA) certifies Whistler’s goods. Whistler constructed their second facility in compliance with EU GMP requirements. That benefit will allow Aurora to provide certified organic marijuana goods to the burgeoning European industry.
Whistler has a substantial-scale cold-water extraction technologies distinctive from any other producer, which produces a host of organic-certified goods.
Whistler runs two indoor licensed cannabis production facilities. The initially is positioned in Whistler, British Columbia. The second is a new goal-constructed, state-of-the-art facility in the exact same location. They anticipate the latter will attain complete-capacity in Summer time 2019 and will bring combined production capacity additional than five,000 kg annually.
Expanded international footprint
Whistler serves worldwide markets that will expand Aurora’s footprint. Promoting in each Australia and the Cayman Islands currently, Aurora plans to use its in depth expertise in creating EU GMP certified operations to develop Whistler’s international export possibilities.
Due to the fact 2015, Whistler has posted optimistic money flows. The industry appears to accept larger pricing from Whistler in exchange for regularly higher high quality, organic item. Certainly, its promoting rates are up to 50% larger than prices in the typical Canadian healthcare industry.
Whistler provides 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 considerable value premium in each the healthcare 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 boost industry attain for their exceptional goods. Whistler has established leadership in the organic cannabis industry, 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 high quality requirements, as nicely as its substantial footprint in each the Canadian and international cannabis markets, Aurora is the excellent companion for Whistler to boost our development and margin profile. We really feel there is a sturdy cultural match, and think that Aurora is the correct house for us to keep our organic craft cultivation identity though getting in a position to leverage the sources and capabilities of a substantial and quickly expanding worldwide firm.”
Neil Belot, Aurora’s Chief International Small business Improvement Officer also mentioned, “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 goods that command amongst the highest rates in the Canadian adult customer use sector, targeting the premium organic craft segment in each the customer and healthcare markets. Moreover, as the only cannabis producer in the planet-renowned resort town of Whistler, British Columbia, the firm has created broad brand appeal, each across Canada and internationally.”
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