Canadian cannabis company Aurora Cannabis expands its recreational portfolio by announcing the acquisition of TerraFarma Inc., a parent company of Thrive Cannabis, an Ontario-based vertically integrated cannabis company. Toronto-based TerraFarma Inc. acquired 100% of the shares of Thrive Cannabis in 2019. According to the press release, Aurora will acquire all of TerraFarma’s issued and outstanding shares for $38 million in cash and Aurora shares. Furthermore, Thrive will also be eligible for up to $20 million in shares, cash, or both, if it reaches specific revenue targets within two years. The transaction is expected to close in Q4 of Aurora’s 2022 fiscal year. This would help Aurora reach profitability by the first half of its 2023 fiscal year. Aurora said it plans to put the Thrive team in charge of its Canadian recreational cannabis portfolio to advance its shift in focus to products such as dried flowers, pre-rolls, vapes, and concentrates. Thrive, a licensed producer of super-premium cannabis concentrates and craft dried flowers, is most widely known for its award-winning flagship recreational brand, Greybeard Cannabis, launched in 2020. Through the acquisition of TerraFarma, Aurora Cannabis adds two brands to its portfolio: Greybeard, a premium brand with a lineup of concentrates popular among budtenders and cannabis connoisseurs, and Being, a wellness-oriented brand known for its sublingual THC and CBD strips.
Dario Sabaghi, Forbes, 03/23/2022 20:00:00