Just last week, Canadian marijuana producer Aurora Cannabis Inc. agreed to acquire CanniMed Therapeutics Inc. in a sweetened C$1.1 billion ($852 million) cash-and-stock deal, and now, as companies jockey for a good market-share, we have another big buy-out.
With Aphria agreeing to buy Brampton, Ontario-based Nuuvera for C$826 million ($670 million) in cash and stock, Aphria is setting itself up for a much larger international market. The offer of about C$8.50 a share is 21 percent higher than Nuuvera’s closing price on Friday.
The combined Canadian medical and recreational marijuana market is expected to reach about C$8.0 billion in sales by 2021. And having a foot in the door with global markets is only good for business.
“This positions us to grow internationally and realigns the potential of these emerging cannabis markets,” Aphria Chief Executive Officer Vic Neufeld said Monday on a conference call, reports Bloomberg.
Under the agreement, pursuant to a court-approved plan of arrangement under the Business Corporations Act (Ontario), the combined company will leverage Nuuvera’s extensive international network and state-of-the-art manufacturing practices, building on an already successful partnership between Aphria and Nuuvera under the Aphria brand.
Aphria also says this deal will help to grow its international footprint in Germany, Italy, Spain, the United Kingdom, Malta, Israel, Lesotho and Uruguay on top of their existing deals in Australia, reports CBC.
Under the terms of the deal, Nuuvera shareholders will receive $1.00 in cash plus 0.3546 of an Aphria share for each share they hold. And based on Aphria’s 10-day volume weighted average price of $21.15, the offer is worth $8.50 per share.
In other news concerning Aphria Inc, on January 15, 2018, they agreed to buy Broken Coast Cannabis Inc., a cannabis producer on Vancouver Island, in a transaction valued at $230 million in cash and stock. The three co-founders of Broken Coast are expected to remain with the company.
