Aurora Cannabis signs deal worth USD 3.2 billion to buy MedReleaf

Date: 2018-05-15   Author: Saipriya Iyer  Category: #market

Aurora Cannabis signs deal worth USD 3.2 billion to buy MedReleaf

Aurora Cannabis Inc., a licensed producer of medical marijuana, has apparently decided to acquire MedReleaf, a notable medical cannabis manufacturer, for USD 3.2 billion in an all-stock bid. According to Neil Closner, CEO of MedReleaf, this is one of the biggest deals signed so far across Canada’s emerging medical cannabis sector.

In the event that the agreement receives the nod of approval, it would lead to the creation of a combined entity capable of manufacturing over 570,000 kgs of medical marijuana yearly. Reportedly, the country is likely to legalize the use of recreational marijuana and the strategy is likely to benefit both the Canada-based firms.

Analysts estimate that the combined production ability of both the firms will fulfill over two-thirds of the overall cannabis demand across the Canadian market in 2019. Terry Booth, the CEO of Aurora Cannabis, has stated that the deal will provide the firm with an opportunity to tap the expansive global medical marijuana market. A key official of MedReleaf is of the view that the firm’s acquisition by Aurora will provide the shareholders an immediate premium.

Reliable sources cite that the deal will provide USD 29.44 for each MedReleaf Share, an eighteen percent increase over its closing stock price at USD 24.90 last Friday. After the announcement of the acquisition deal, MedReleaf’s stock price increased on the Toronto Stock Exchange on Monday. The deal between the two cannabis producing giants will escalate the expansion of Canada medical marijuana industry, claim experts.

It has been speculated that the joint entity will have a market capitalization of approximately USD 7.44 billion – a figure commendably more than that of Canopy Growth Corporation, the largest licensed producer of medical cannabis in Canada.

Earlier, Aurora had also acquired CanniMed, another Canada-based medical marijuana producer, for USD 1.1 billion in an all stock & cash transaction.



About Author


Saipriya Iyer linkdin-boxtwitter

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

Post Recommendents

Abiogen Pharma takes over Altamedics in a deal worth $8 million

Author: Pankaj Singh

Italy-based pharmaceutical company Abiogen Pharma S.p.A. has reportedly completed the acquisition of Altamedics GmbH, a German pharmaceutical distribution company, which is slated to become the first foreign branch of ...


Healthcare Gamification Market Share, Size, Technology Advancement, Top Companies, Forecast 2027

Author: Rahul Varpe

DEC Research has published its most recent report with the title ‘Global Healthcare Gamification Market In-depth Research on Industry Size, Trends, Emerging Growth Factors to 2027’. The report basically contains an outline of the Healt...


Medical Gloves Market Share, Growth, Technology Advancements, and Forecast by 2030

Author: Rahul Varpe

DEC Research has published its most recent report with the title ‘Global Medical Gloves Market In-depth Research on Industry Size, Trends, Emerging Growth Factors to 2030’. The report basically contains an outline of the Medical Gloves...