Record-Breaking Deal in the Cannabis Market

A major Canadian producer of legal cannabis, Aurora Cannabis Inc., has acquired its competitor MedReleaf Corp. The deal is valued at approximately $2.5 billion, according to the company’s press release.

The document states that, as a result of the merger, Aurora Cannabis shareholders will own 61 percent of the combined company, while MedReleaf shareholders will hold the remaining 39 percent. The new organization will operate nine facilities in Canada and two in Denmark. After the merger, the company will be able to produce more than 570,000 kilograms of cannabis per year, as noted in the press release.

Aurora Cannabis and MedReleaf are among the largest players in the Canadian market. According to Bloomberg, Aurora’s market capitalization is $3.5 billion, while MedReleaf’s is $1.6 billion. This transaction marks the largest deal in the history of legal cannabis producers.

The merger took place shortly before the legalization of cannabis at the federal level in Canada, with the law set to take effect in July 2018. Medical cannabis has been legal throughout the country since 2013.