Aurora and Whistler Sign Letter of Intent
Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) shares loved an almost 6% pop in value in at present’s buying and selling after the corporate introduced the completion of a letter of intent with Whistler Medical Marijuana Corporation. The Edmonton-based hashish firm will purchase all of the issued and excellent shares of Whistler in an all inventory deal.
All-Share, $175M Transaction
Taking milestone funds under consideration, the all-share transaction will whole roughly $175 million in change for Whistler’s privately-held shares.
Once closed, Aurora will achieve a number of premium, differentiated and organic-certified merchandise for each medical and adult-use markets. Moreover, including Whistler will strengthen Aurora’s place within the west coast marijuana market.
The personal firm is positioned in Whistler, British Columbia. Following the corporate’s success with award-winning licensed BC bud, Aurora shareholders hope to revenue from the profitable model.
What is Aurora Getting?
Whistler has a considerable following amongst sufferers and leisure customers for his or her premium hashish merchandise. Beyond that, nevertheless, what’s Aurora getting for his or her $175 million?
Whistler, British Columbia welcomes over 2.7 million guests every year, persistently making certain it’s a prime vacationer spot globally. Whistler’s model bootstraps from that standing, and thus resonates strongly throughout each Canadian and worldwide markets.
First mover benefit
After its founding in 2013, Whistler turned one in every of Canada’s unique ten licensed producers. Moreover, it was the primary licensed producer to obtain natural certification and promote certified-organic hashish merchandise.
Furthermore, the Fraser Valley Organic Producers Association (FVOPA) certifies Whistler’s merchandise. Whistler constructed their second facility in compliance with EU GMP requirements. That benefit will allow Aurora to provide licensed natural marijuana merchandise to the burgeoning European market.
Whistler has a large-scale cold-water extraction expertise totally different from another producer, which produces a number of organic-certified merchandise.
Whistler runs two indoor licensed hashish manufacturing services. The first is positioned in Whistler, British Columbia. The second is a brand new purpose-built, state-of-the-art facility in the identical space. They anticipate the latter will attain full-capacity in Summer 2019 and can carry mixed manufacturing capability greater than 5,000 kg yearly.
Expanded worldwide footprint
Whistler serves world markets that can increase Aurora’s footprint. Selling in each Australia and the Cayman Islands already, Aurora plans to use its in depth expertise in growing EU GMP licensed operations to develop Whistler’s worldwide export alternatives.
Since 2015, Whistler has posted optimistic money flows. The market appears to settle for greater pricing from Whistler in change for persistently prime quality, natural product. Indeed, its promoting costs are up to 50% greater than charges within the common Canadian medical market.
Whistler gives over 30 flower varieties and oils, from a 150 pressure genetic financial institution.
What does Aurora’s Management Say?
“This transaction adds an iconic, organic certified BC-based brand with exceptional traction and a significant price premium in both the medical 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 increase market reach for their exceptional products. Whistler has established leadership in the organic cannabis market, and we look forward to welcoming Christopher and his team to the Aurora family.” Christopher Pelz, CEO, and Founder of Whistler.
Pelz added, “With its commitment to the highest product quality standards, as well as its large footprint in both the Canadian and international cannabis markets, Aurora is the ideal partner for Whistler to enhance our growth and margin profile. We feel there is a strong cultural fit, and believe that Aurora is the right home for us to maintain our organic craft cultivation identity while being able to leverage the resources and capabilities of a large and rapidly growing global company.”
Neil Belot, Aurora’s Chief Global Business Development Officer additionally mentioned, “Whistler, the longest operating certified organic cannabis producer in Canada, has an exceptional track record built on the consistent delivery of premium user experiences. This has resulted in strongly-rated products that command among the highest prices in the Canadian adult consumer use industry, targeting the premium organic craft segment in both the consumer and medical markets. Furthermore, as the only cannabis producer in the world-renowned resort town of Whistler, British Columbia, the company has developed broad brand appeal, both across Canada and internationally.”
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