Vancouver-based producer Aurora Cannabis Inc. (TSX: ACB) (OTCQB: ACBFF) the 3rd largest cannabis producer by market cap at CAD $2.2 billion, today announced it completed buying Larssen Ltd, a leading global greenhouse engineering and design consultancy, and H2 Biopharma, a Quebec-based company in late-stage production licensing process.
Aurora stock rose 6% to US$5.52 in early trading on the news.
Larssen has built high-tech, automated, environmentally controlled greenhouses for over 30 years, and has consulted on over 1,000 projects, including some of the world’s most advanced greenhouses. Larssen is now involved in 15 cannabis projects, five with Canadian licensed producers.
H2 Biopharma is completing a 48,000 sq ft (1.1 acres) cannabis production facility in Lachute, near Montreal, expected to produce 4,500 kgs (9,900 lbs) of cannabis per year. H2 can expand this facility onto 46 acres nearby for just $136,000.
“The addition of this latest facility will increase our capacity to serve the domestic and export markets, and signals our major commitment to operations in Quebec, Canada’s second most populous province,” said Terry Booth, CEO.
The Larssen purchase will add $6 million to Aurora’s fiscal 2018 revenues. H2’s Lachute facility is expected to be ready for production in early to mid-2018.
For the H2 acquisition, Aurora issued 4.8 million common shares to the H2 vendors at $5.22 per share, based on 90% of the price of Aurora shares for the 5 days prior to the agreement. 1.7 million shares will be released immediately, with the rest put in escrow subject to milestones.
Aurora’s geographically spread production capability will soon reach nearly 1 million sq ft (23 acres), including:
– an Alberta facility (1.26 acres)
– a Montreal facility (.92 acres)
– an Edmonton facility (18.37 acres) (under construction)
– a Quebec facility owned through Larssen (under construction)
It also has globally and technically diverse ownership stakes as follows:
– 20% of extraction company Radient Technologies, in Edmonton
– 50.1% of Hempco Food and Fiber, in Edmonton
– 20% of Cann Group, the first Australian firm licensed to cultivate medical cannabis
– 100% of Pedanios, a leading wholesale importer, exporter, and distributor of medical cannabis in the European Union, based in Germany.
– 100% of BC Northern Lights Ltd. a producer of indoor lighting systems
– 100% of Urban Cultivator Inc., a producer of indoor gardening appliances for home and professional kitchens.
Source Aurora press release