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Aurora Cannabis to Acquire MedReleaf in CDN 3.2bn Stock Transaction
Wednesday 16 May 2018

16 May 2018 - Canada-based Aurora Cannabis Inc. (TSX: ACB) has entered into a definitive agreement to acquire all issued and outstanding common shares of Canada-based cannabis company MedReleaf Corp. (TSX: LEAF) in an all-share transaction valued at approximately CDN 3.2bn (USD 2.5bn), the company said.
Under the terms of the agreement, holders of MedReleaf common shares will receive 3.575 common shares of Aurora for each MedReleaf common share held.
Upon completion of the transaction, existing Aurora and MedReleaf shareholders would own approximately 61% and 39% of the pro forma company, respectively, on a fully diluted basis.
The proposed transaction brings together two of Canada's premier cannabis companies with a total funded capacity of over 570,000 kg per year of cannabis through nine facilities in Canada and two in Denmark.
Aurora said the transaction will create a platform for accelerated growth and success on a global scale. The companies' complementary assets, strategic synergies and strong market positioning will provide critical mass and a product portfolio in preparation for the adult consumer use market in Canada.
Aurora is a licensed producer of medical cannabis pursuant to Health Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR).
MedReleaf offer a range of products for the global medical market and is committed to serving the therapeutic needs of its medical patients and providing a product assortment for the adult-use recreational consumer.
BMO Capital Markets is acting as the exclusive financial advisor to Aurora. McMillan LLP is acting as legal counsel to Aurora.
Canaccord Genuity is acting as the exclusive financial advisor to the special committee of the board of directors of MedReleaf, who also received an independent fairness opinion from GMP Securities, and an independent financial diligence report from Deloitte LLP.
Stikeman Elliott LLP is acting as legal counsel to MedReleaf. Davies Ward Phillips and Vineberg LLP is acting as legal counsel to shareholders of MedReleaf.
Date Published: 16/05/2018
Target: MedReleaf Corp
Country: Canada
Deal Size: 2.5bn (USD)
Sector: Consumer Products
Type: Corporate acquisition
Financing: Stock
Status: Agreed
Buyer: Aurora Cannabis
Buyer Advisor: BMO Capital Markets , Davies,  Ward Phillips and Vineberg