Shares of Aurora Cannabis were on the move after the Canadian company announced the acquisition of organic marijuana producer, Whistler Medical Marijuana. Whistler Medical Marijuana is a privately held British Columbia-based producer of cannabis.
Shares saw gains of nearly 3.5% by midday on Monday.
The company said it would pay up to C$175 million ($132 million) in stock for Whistler Medical Marijuana Corp.
“I would call [Whistler] the crown jewel of organic cannabis production world-wide,” Aurora Chief Corporate Officer Cam Battley said in a phone interview.
“It’s the first organic-certified company, and now we’ve essentially got the market to ourselves,” he added.
“Going forward, we see sustained strong demand from the adult usage market,” Aurora CEO Terry Booth said in a statement, “as well as strong patient-driven demand for medical cannabis in Canada and abroad.”
Rebecca Brown, chief executive of the cannabis ad firm Crowns Agency remarked, “It’s hard for people to decode who is who, what is what. It’s a good buy for Aurora because it gives them an ability to make the kind of differentiated claim people are familiar with.”
Disclaimer: We have no position in Aurora Cannabis Inc. (NYSE: ACB) and have not been compensated for this article.