Aurora Cannabis has entered into a letter of intent to acquire all the issued and outstanding shares of privately held Whistler Medical Marijuana Corporation, in an all-share transaction valued at up to approximately $175 million, including certain milestone payments.
Whistler operates two indoor licensed production facilities, with its first located in Whistler, British Columbia, and the second, a recently licensed, purpose-built, state-of-the-art facility located a 20-minute drive from the Whistler facility. Once the second facility reaches full capacity (anticipated for Summer 2019) the facilities are anticipated to have a combined production capacity of over 5,000 kg per year. Whistler sells medical cannabis derivatives internationally to both Australia and the Cayman Islands, and through the addition of Aurora's experience in completing EU GMP certified facilities and its large global distribution network, Aurora plans to pursue additional international export opportunities.
"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," said 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, 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, Chief Global Business Development Officer of Aurora, added, "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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