Yesterday, the Canadian company that is defining the future of cannabinoids worldwide, Aurora Cannabis, made an announcement to reveal that a wholly owned subsidiary has acquired a majority stake in Bevo Agtech Inc. This entity represents the sole parent company of Bevo Farms, a leading supplier of propagated vegetables and ornamentals in North America. The transaction was successfully closed, indicating that at the same time, Bebo reached a deal to take over the rights to the Aurora Sky facility in Edmonton, Alberta. The move involved an acquisition of one of Aurora’s subsidiaries in addition to the transaction itself.
Now that the transaction has become a reality, Aurora has the opportunity to take immediate advantage of a strong and profitable business, not to mention its strong positive and growing cash flow. By applying Bevo’s industry-leading plant propagation expertise, Aurora will now be able to drive long-term value from its existing cannabis business.
Aurora will now own 50.1% of Bevo’s outstanding common stock, which will give it a controlling position on Bevo’s board of directors as well as financially strengthen Bevo. Bevo’s experienced management team will continue to be an important part of the company’s actions, maintaining its role in establishing a number of solid growth strategies.
“This investment once again demonstrates our disciplined capital allocation approach and is consistent with both our short-term needs and long-term vision to be the leading global cannabis company,” said Miguel Martin, CEO of Aurora. “Bevo’s track record in generating not only positive Adjusted EBITDA but free cash flow, world-class propagation expertise, and established distribution networks in Canada and the United States makes them an ideal strategic partner. We expect this investment and collaboration between industry leaders will drive significant shareholder value and synergies for both parties.”