Cannapany on May 6, 2022 No Comments
The cannabis company announced the purchase last month
The motivation behind acquisitions is to improve the positioning of the acquiring company in the market. Procurement processes revolve around the search to optimize costs and avoid misuse of the company’s resources. Fortunately for Aurora Cannabis, its acquisition of TerraFarma Inc, the parent company of Thrive Cannabis, has been a success. The previously announced move has been for an aggregate initial consideration of $38 million paid in cash and Aurora common stock.
The terms of the transaction have also added up to $30 million in potential earn-out amounts, payable in cash, Aurora stock, or a combination of both. All are subject to Thrive achieving certain revenue targets within two years of the closing of the transaction.
“With the closing of the transaction, we officially welcome Geoff Hoover and his team to Aurora,” said Miguel Martin, CEO of Aurora. “We look forward to the expertise they will bring to our Canadian recreational business and Aurora’s leadership in the global cannabis space.”
The idea through this transaction is that Aurora’s position in the Canadian market will be greatly strengthened. Placing the Thrive team in charge of Aurora’s Canadian recreational portfolio will become the main tool to make this happen. In addition, it is expected to advance the shift in focus to innovative premium products, including dried flowers, pre-rolls, vapor products and concentrates.
Aurora is recognized as a global leader in the cannabis industry, serving both the medical and consumer markets. The Edmonton, Alberta-based firm is a pioneer in the cannabis space and intends to improve the quality of life for its consumers. Driven by science and innovation, and with a focus on high-quality marijuana products, the company’s brands continue to pave their way as industry leaders in the medical and consumer markets.
Congratulation!