Aurora eyes Australian cannabis market with MedReleaf buy-out
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The news: Canadian medical cannabis firm Aurora Cannabis has acquired MedReleaf Australia, becoming the largest global medical cannabis company operating in nationally legal markets.
The numbers: Aurora has bought the remaining 90% equity interest of MedReleaf that it did not previously own, at an enterprise value of $50 million. The Edmonton-based firm, listed on the Nasdaq and the Toronto Stock Exchange, paid $9.45 million in cash with the balance of the purchase price satisfied by the issuance of common shares of Aurora.
The context: Queensland-based MedReleaf is a leading distributor of medical cannabis products and is the second largest player in the Australian medical cannabis market. The Australian segment, estimated at approximately $400 million, has become one of the largest nationally legal global medical cannabis markets outside of Canada.
Aurora and MedReleaf first partnered in 2017, and Aurora aims to continue to grow its position in Australia and other Asia Pacific countries through the buy-out.
What they said: Aurora CEO Miguel Martin said: "The acquisition of MedReleaf Australia represents a strategic milestone in Aurora's global cannabis leadership, demonstrating our commitment to investing in markets that offer opportunities for sustainable and profitable growth".
"We are excited to solidify our position in this rapidly growing market and the opportunity this transaction presents to us in accelerating our plans to deliver positive free cash flow in calendar 2024," Martin said.
The source: Aurora media release
