Last year, amid a slowdown in the cannabis industry, Aurora Cannabis decided to bring to a halt its Aurora Sun greenhouse in Medicine Hat, Alberta. The facility was meant to be one of the largest cultivation facilities for the company, measuring 1.7 million square feet. However, the company is now ready to part ways with the property and is willing to negotiate a sale if qualified offers come along.
Aurora initially invested around $205 million into the facility, with plans to invest substantially more. However, the state of the market has forced it to reconsider, and it has brought in Colliers International to be the financial adviser for the sale, as well as the listing agent. The intended sale is an opportunity for Aurora to feel out the market and see what kind of interest it might receive; however, there is no definitive target price or guaranteed sale. If Aurora finds an adequate buyer, it wants to be able to complete the transaction between the second and third quarters of this year.
An Aurora spokesperson told MJBizDaily that the company “continuously and carefully reviews the company’s operations network to ensure it is fit for our business today and in the near term.” The unnamed individual added, “In response to the recent shifts in the industry and our strategic imperatives, the company announced it will pause operations at Aurora Sun in Medicine Hat, Alberta, indefinitely. We are actively marketing the facility.”
Aurora is going to remain flexible on any potential deal, which would cover the main facility and another building that measures 285,000 square feet. It would consider an outright sale for either building, or both, in exchange for cash or other forms of payment, potential investment partners or a lease. Matt Rachele, the managing director of Colliers, adds, “There will be some additional capital spend required to complete the facility, but that amount will be dictated by the purchasers intended use.”