Aurora Cannabis “Sells” Medicine Hat Facility To Bevo Farms

Aurora Cannabis (TSX: ACB) has sold what was at one time to be a flagship facility operated by the company in southern Alberta.

The Aurora Sun facility, located in Medicine Hat, Alberta, has been sold to that of Bevo Farms. The transaction was conducted via the sale of an Aurora subsidiary that owned the facility to that of Bevo.

It’s currently unclear just how much the company received from the sale, with the company declaring it receive “up to $15 million,” dependent upon certain milestones being achieved at the facility.

The strange terms of the facility sale appears to be a result of Aurora owning a controlling interest in Bevo Agtech, the parent company of Bevo Farms. In August 2022, Aurora took a 50.1% in the vegetable and ornamental plant grower for $45 million. As part of that deal, the firms Edmonton facility, Aurora Sky, was sold to Bevo.

READ: Aurora Cannabis Acquires Majority Stake In Former Zenabis Subsidiary Bevo Farms

As a result of the controlling interest, revenue and earnings generated by Bevo are consolidated on Aurora’s balance sheet – but it also means that the “sale” amounts to a reshuffling of the facilities ownership amongst Aurora’s interests. The shuffle of ownership meanwhile is expected to reduce annual carrying costs for Aurora by $2 million.

Aurora Cannabis last traded at $0.67 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. 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.

Leave a Reply

Video Articles

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

SSR Mining Q1 Earnings: Costs Continue To Climb

Recommended

First Majestic Makes Second Major Discovery At Santa Elena In Just A Year

PTX Metals Hits 235.1 Metres Of Copper, Nickel Mineralization In Longest Intercept To Date At W2

Related News

Aurora Cannabis Files US$500 Million Base Shelf Prospectus, Reveals ATM Largely Complete

Aurora Cannabis (TSX: ACB) (NYSE: ACB) appears to be in need of money again. The...

Tuesday, October 27, 2020, 12:07:15 AM

Aurora Cannabis Tumbles Following Flat Revenues, Wider Net Loss

Aurora Cannabis (TSX: ACB) reported on late Tuesday its financial results for fiscal Q4 2022 ended...

Thursday, September 22, 2022, 03:49:00 PM

Aurora Cannabis To Conduct 10 To 1 Reverse Split To Meeting Nasdaq Listing Requirements

In an effort to remain listed on the Nasdaq, Aurora Cannabis (TSX: ACB) has seen...

Wednesday, January 31, 2024, 08:22:26 AM

Cronos Group Licenses IP From Aurora Cannabis, 22nd Century Group Related To Biosynthesis

Aurora Cannabis (TSX:ACB) has reportedly entered into a licensing arrangement with 22nd Century Group (NASDAQ:...

Wednesday, December 15, 2021, 09:21:00 AM

Aurora Cannabis Halted, Booth’s Departure Rumoured

Aurora Cannabis (TSX: ACB) (NYSE: ACB) is currently halted pending news from the company. The...

Thursday, February 6, 2020, 02:04:39 PM