On November 22, the Canada-based company Aurora Cannabis Inc. acquired International Cannabis Corporation (ICC) for an aggregated purchase price of $290 million, making ICC a full-fledged subsidiary of Aurora Cannabis Inc.
According to Neil Belot, who is the Chief Global Business Development Officer of Aurora, the Uruguayan company is Aurora’s strategic partner of choice since it has “developed one of the deepest international networks Aurora has encountered.”
He went on to add that the “ICC has leveraged its early mover advantage in Uruguay to capitalize on significant growth opportunities in the broader Latin American cannabis markets. With world-class production, process facilities and distribution infrastructure in place, this transaction strengthens Aurora’s position as the global partner of choice in multiple international markets.”
In accordance with the TSX Venture Exchange, the common shares of ICC will be delisted and applications will be made for ICC to cease being a reporting issuer.
With this acquisition, Aurora has established itself as the industry leader, not only in Latin-America but on a worldwide scale as well. It will benefit substantially from ICC’s strong portfolio of high-quality, commercial agreements and its state-of-the-art science and GMP compliant processing facility, all of which could be built up by the ICC because of Uruguay’s early legalization of marijuana in 2013.
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Alejandro Antalich, CEO of ICC Labs said, “The complementary nature of our two organizations makes this transaction an ideal fit that will allow us both to realize our ambitious growth strategies. We’re excited to announce our upcoming official grand opening of the first state-of-the-art laboratory in Latin America on November 28th. This facility based in Uruguay is focused on the development of pharmaceutical grade products derived from cannabis and hemp. With our Latin American facilities coming online, as well as multiple supply and distribution agreements in large international markets in place, we believe that Aurora’s resources, innovation capabilities, and broad global distribution networks represent an ideal partner to accelerate our growth.”
By Aurora’s own estimation, ICC will produce over 450,000 kilos of cannabis flower per year. The newly acquired space amounts to two greenhouses, totaling 92,000 sq ft, and three outdoor farms, two of which are located in Uruguay.
The company based in Edmonton has widely exceeded analysts’ expectations, which forecasted Aurora to produce a maximum capacity of around 100,000 kilograms per year.