With its Canadian market share falling apart, Aurora Cannabis (TSX: ACB) has evidently placed its focus on other markets. The firm this morning indicated that it has taken a “significant equity stake” in a Dutch cannabis firm.
The firm has taken a stake in Growery B.V., a successful applicant under the Controlled Cannabis Supply Chain Experiment. And that’s about where the hard details end.
Despite the claim to a “significant stake,” the company failed to provide any details on just how much of the company it is acquiring, or the dollar terms of the arrangement. Instead, the company commented that it “intends to invest an immaterial cash amount” with further investment dependent on certain undisclosed milestones being met.
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A secured loan is also to be provided for the construction of the facility, as well as to fund early operations of the company. Again, details of such were not provided – including the size of the loan.
The only detail provided, which suggests the potential for a majority stake in the firm, is that the company intends to “fully consolidate the revenues realized through the investment into Growery.”
Aurora Cannabis last traded at $8.26 on the TSX.
Information for this briefing was found via Sedar and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
