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Aurora picks up HotHouse
Posted on Tuesday, 07 August 2018 14:46
One of the leading cannabis companies, Aurora Cannabis, has announced it is to expand its business by acquiring the cannabis business of HotHouse Consulting for an undisclosed sum.
A deal is subject to completion of definitive agreements and the approval of the Toronto Stock Exchange.
Hothouse has granted 1.94 million options to Aurora to purchase common shares from its officers, alongside 345,000 scrips of restricted stock.
The options vest annually over a 36-month period and are exercisable at CAD 7.39 (USD 5.69) per common security.
News of a transaction comes just months after Aurora agreed to buy CanniMed Therapeutics in the world’s largest recreational cannabis deal for CAD 1.10 billion in January.
Founded by Laust Dam in 2004, HotHouse specialises in consulting growers in agricultural produce through hybrid greenhouse techniques.
It features a client base of 50 customers worldwide, and now focuses on consulting on the specific requirements needed for large-scale cannabis production.
Upon closing of the deal, Hothouse’s founder Dam will become the vice president of horticultural development, of Aurora’s Aurora Larssen Project (ALPS).
A partnership will improve how cannabis is grown, as ALPS will be able to provide advice such as account planning, climate factors and pest control in order to preserve crops.
The deal also offers ALPS greater access and understanding of large-scale irrigation systems that can highlight any deficiencies in a plantation and make corrections.
As a result, the buyer’s operations, such as its Alberta-based production facility Aurora Sky, can expect top line growth based on small modifications.
Laust Dam, the founder of HotHouse, said: “Together with ALPS, we can leverage our existing relationships with key technology providers and the latest implementation techniques along with our collective insight to develop the most advanced hybrid greenhouse facilities.”
Based in Edmonton, Alberta, Aurora funds the capacity of over 570,000 kilograms of cannabis a year, with operations spanning across 14 countries and five continents.
Aurora uses leading technology, such as facility engineering and genetic research, to aid in the production and maintenance of the crops.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,470 deals targeting pharmaceutical preparation manufacturing providers announced worldwide since the beginning of 2018.
Takeda Pharmaceutical, in the largest of these deals, agreed to buy speciality biopharmaceutical manufacturing holding company Shire for USD 62.37 billion.
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