Aurora to buy out remaining stake in medical cannabis company
By Medicine Hat News on February 9, 2024.
@MedicineHatNews Aurora Cannabis Inc. has announced a deal to buy the 90 per cent stake it doesn’t already own in medical cannabis company MedReleaf Australia. Releasing its third-quarter results on Thursday, the Edmonton-based cannabis producer also said it is increasing a credit facility by C$16 million to advance conversion of the Aurora Sun facility, in Medicine Hat, and Aurora Sky greenhouse, in Leduc, to operate as horticulture and vegetable starters under it’s new BEVO subsidiary. The firm has previously said work in Medicine Hat could be completed by the fall of 2024. The MedReleaf deal was valued the Australian medical cannabis distribution company at AUD$50 million or about $44 million in Canadian dollars. Edmonton-based Aurora says it paid A$9.45 million in cash with the balance in common shares issued. The deal came as the company reported a third-quarter net loss from continuing operations of $25.2 million compared with a net loss of $62.4 million a year earlier. Aurora says the lower net loss stemmed from a $32.7-million increase in gross profit and a $10.4-million decrease in operating expenses. Its total net revenue for the period ended Dec. 31 hit $64.4 million compared with $61.1 million a year prior. — with files from The Canadian Press 11-10
