Aurora Cannabis Inc. (ACBFF) announced it has completed its deal to acquire Larssen Ltd and H2 Biopharma as previously announced on November 23. The Larssen deal is on track to record C$6 million in fiscal 2018 and will be immediately accretive for Aurora.
Larssen is a greenhouse engineering and design consultancy firm that has been in the business for 30 years. It has been a part of over 1,000 projects worldwide and is currently working on 15 different cannabis greenhouses, Five of those are with Canadian Licensed Producers.
H2 Biopharma is a late stage medical marijuana applicant that is based in Quebec. The company is close to completing a 48,000 square foot cannabis grow facility called the Lachute facility and is expected to produce approximately 4,500 kilograms of high-quality cannabis per year. In addition to the, there is the potential to expand on 46 acres of land that H2 can acquire for C$136,000. Aurora Larssen Projects will play a role in the completion of this facility.
“These are two important acquisitions for Aurora that clearly show how our growing constellation of trusted partners and subsidiaries accelerate shareholder value creation through strategic synergies,” said Terry Booth, CEO. “Larssen’s pedigree in designing the world’s most technologically advanced and efficient greenhouses will be leveraged for the completion of our new Lachute Facility. 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.”
According to the company’s statement, “Aurora has issued 4,789,273 common shares of Aurora to the H2 vendors, at a price of $5.22 per share, based on 90% of the VWAP of the Aurora common shares for the 5 days immediately prior to the signing of the share purchase agreement. Of these shares, 1,728,718 are released to the H2 vendors immediately, and the remaining shares have been put into escrow and are subject to release to the H2 vendors or cancellation, based on the achievement of certain operational milestones.”
Aurora Cannabis was lately trading at $5.88 on the OTC Markets, this is a jump of 113% over November’s price of $2.75. Revenue has climbed 168% year over year as of the quarterly results ending September 30.