TORONTO — Licensed marijuana producer Aphria Inc. announced an agreement Monday to buy medical cannabis firm Nuuvera Inc. in a cash-and-stock deal that it says values the company at $826 million.
The deal builds on a partnership between the companies as it combines Aphria’s production with Nuuvera’s expertise in cannabis processing and extraction. The combination will also help grow Aphria’s international footprint.
“The combination of Aphria and Nuuvera creates a true global leader in medical cannabis with excellent potential for growth and value creation,” Aphria chief executive Vic Neufeld said in a statement.
This deal is yet another sign of consolidation, less than a week after Aurora Cannabis Inc. reached a friendly billion-dollar to acquire rival licensed producer CanniMed Therapeutics Inc. for a mix of cash and stock in the biggest acquisition the marijuana sector has seen. As well, earlier this month Aphria announced a deal to buy B.C.-based Broken Coast Cannabis Inc., a transaction valued at $230 million.
Analysts expect consolidation to accelerate in the sector ahead of the legalization for recreational use of marijuana this summer.
Under the terms of the deal, Nuuvera shareholders will receive $1 in cash plus 0.3546 of an Aphria share for each share they hold. Based on Aphria’s 10-day volume weighted average price of $21.15, the offer is worth $8.50 per share.
“As part of Aphria, we will have access to every tool we need to open key international markets and execute on our growth plan as part of a stronger, well-resourced global cannabis leader,” Lorne Abony, CEO of Nuuvera said in a statement.
The transaction is subject to customary closing conditions including approval by Nuuvera shareholders. Nuuvera shares closed at $7 on Friday, while Aphria shares finished last week at $20.16.
Assuming Aphria closes its acquisition of Broken Coast, that it also agreed to buy using stock and cash, Nuuvera shareholders will own approximately 14.8 per cent of the combined company.
NIAGARA FALLS, ON JUNE 09, 2020. North America’s leading cannabis cultivation and extraction conference, tradeshow and awards show, Grow Up, has made the difficult decision to reschedule the 4th annual show in Niagara Falls, ON which was slated to take place September 1-3, 2020.
This decision has been made from monitoring the COVID-19 (coronavirus) situation both in Ontario and around the world, along with the advice and recommendations from Grow Up’s advisory board.
“The health and safety of our attendees, speakers and exhibitors are our main priority,” says Randy Rowe, President of Grow Up. “Even though our event is three months away, we feel that we cannot responsibly produce a show that brings together 4,500 delegates and over 200 exhibitors from around the world”.
Grow Up Conference and Expo will be bringing its conference, tradeshow and awards to Victoria BC next summer. This west coast show featuring the Grow Up Extraction Zone, hosted by Extraction Magazine, will bring over one hundred high-level industry speakers, exhibitors and thousands of delegates together on Vancouver Island. Details to follow.
The premier Grow Up Awards Gala will still take place, but will be hosted in Victoria BC in the Summer of 2021. “The Cannabis industry has made tremendous growth over the last year and we are determined to recognize the excellence and innovation with our 2nd annual awards show”, says Neill Dixon, Co-Founder of Grow Up. “Bringing the Grow Up Awards Gala to Victoria BC will make it easier for our west coast growers and suppliers to be a part of the celebration”.
The 2021 Niagara Falls version of Grow Up will take place September 1-3, 2021 at the Scotiabank Convention Centre, Niagara Falls, ON.
We appreciate your patience and thank you for your support and stay safe.
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