It was today that Aurora Cannabis Inc (OTCMKTS:ACBFF) disclosed everything regarding its definitive arrangement agreement with MedReleaf Corp. The plan was for Aurora to purchase all the issued and outstanding common shares belonging to MedReleaf in an all-share transaction whose value is estimated to stand at almost C$3.2 billion on a fully diluted basis.
The actual terms of the agreement
The terms of the Arrangement Agreement provide that upon the completion of the deal the MedReleaf and Aurora shareholders will have to their side about 39% and 61% of the pro forma company and it is crucial to mention that it will be on a diluted basis.
A person familiar with the matter but who wanted his identity kept anonymous outlined that the proposed transaction was bringing into close contact two best performing cannabis companies. Each of the two had its own production philosophies and strategic visions. It was also revealed that both of them had distribution networks, capabilities, products and complementary assets.
A focus into the future
The two business giants are looking forward to accelerate success and growth on a global scale. That is achievable considering that these pioneering cannabis companies are committed to high quality and low cost production as well as high technology towards the achievement of their clear cut goals.
The CEO of MedReleaf Neil Closner in speaking to a number of journalists outlined the company had been established in the hope that it would play a huge role in helping improve the quality of life for the large number of patients around the globe. Over the years it has boasted of unrivaled experience and it is going to continue with the same spirit.
Aurora is with the passage of time taking more control of Hempco Food and Fiber Inc. The latest reports indicate that it managed to increase its ownership to a figure of almost 52. 7% .The Company’s management has acknowledged the fact that Hempco played quite a significant role in terms of helping it secure access to low-cost raw material which meant it could make higher profits in the long run.
The collaboration is going to help the two businesses to further develop their portfolio of value but what the future brings is something that we will just have to wait and see.