Two Canadian companies are about to merge in the biggest marijuana deal to ever go down.
Two of the largest players in Canada’s marijuana industry, Aurora Cannabis and MedReleaf will be merging.
Aurora Cannabis Inc. has agreed to buy rival MedReleaf Corp. for around $2.2 billion in stock, the companies said Monday in a statement.
The two merging will create a producer that will have the capacity to grow 1.26 million pounds of marijuana a year at nine facilities in Canada as well as two in Denmark. The merged company will have distribution networks as well at home and in Europe, Australia, and South America.
Aurora Chief Executive Officer Terry Booth said, “We’re not done,” to reporters in Toronto. “Over the next couple weeks you’ll see some more activity from Aurora,” but nothing on the scale of the MedReleaf deal.
“The likelihood of another bidder emerging with a superior offer is low in our view, given the size of the transaction and the overwhelming support of MedReleaf’s shareholders,” remarked GMP Securities analyst Martin Landry.