Aurora Cannabis is to acquire fellow Canadian firm Thrive for an initial value of US$38m plus earn out amounts over the next two years.
Aurora has reached an agreement to purchase Thrive’s parent firm TerraFarma.
The transaction will strategically strengthen Aurora’s position in the Canadian market by placing the Thrive team in charge of its Canadian recreational portfolio, the company said.
This, said Aurora, will advance its shift in focus to premium products including dried flower, pre-rolls, vapour products, and concentrates.
Founded in 2018, Thrive is a licensed producer of premium cannabis concentrates and craft dried flower.
In the North American market it is most widely known for its award-winning flagship recreational brand, Greybeard Cannabis Co.
Aurora CEO Miguel Martin said: “As consolidation among licensed producers accelerates, it’s vital that any transactions we make, now or in the future, be strategic, accretive, and centred around adding exceptional talent and brands that align with our path to profitability.
“In these respects, Geoff and the Thrive team have a track record seldom found elsewhere in the Canadian market. They are truly exceptional cultivators who have gained trust with consumers and developed products that have been recognised and acclaimed by Canadian budtenders and industry peers. We see a unique opportunity to leverage their expertise to deliver near and long-term benefits for both our recreational and medical markets.
“This transaction supports our path to profitability while ensuring that we are strategic in our M&A activity. Thrive’s achievement of positive standalone EBITDA, combined with their exceptional operational and brand capabilities, truly set them apart, and we look forward to leveraging their expertise as we embark together on Aurora’s path to profitability.”
Thrive CEO Geoff Hoover said: “We are excited to be joining a team that shares our vision for delivering the highest quality, premium cannabis products to consumers in a way that generates sustainable profitability.
“We look forward to combining our best-in-class products and innovation pipeline with Aurora’s depth of operational capabilities, robust route to market and shared focus on superior science and genetics that is critical for advancement in this sector. This combining of two great companies will be transformative.”
Aurora serves both the medical and consumer cannabis markets.
Its medical cannabis brands include MedReleaf, CanniMed, Aurora, Whistler Medical Marijuana Co, and Pedanios.
