Aurora, a leading Canadian medical marijuana licensed producer, announced that has successfully completed the acquisition of 100% of BC Northern Lights and Urban Cultivator, two of the most important companies in the marijuana home gardening vertical. The two companies were founded by Tarren and Linnea Wolfe.
These acquisitions represent the company’s efforts to capitalize on the home gardening market, which currently serves Health Canada patients choosing to produce their own medical-grade cannabis under the ACMPR according to the company’s press release.
This vertical is expected to grow rapidly following the expected legalization of the recreational market next year (July 2018). There were approximately 10.5K Canadians currently registered with Health Canada to grow (or have grown on their behalf) as of August 2017.
Aurora will now be able to offer the full home growing solution, from hardware and accessories to plants and home growing expertise.
history of success
The two companies boast a combined 23 years of experience in the field, with strong, rising demand and projected combined sales of $5 million for the twelve months ending October 31, 2017, according to the press release. According to Neil Belot, Global Business Development Officer at Aurora, BC Northern Lights has been recognized as the segment leader for over ten years. The company was founded around 2001.
- Cash (on closing) : $3.85 million (+/- working capital adjustment)
- Common Shares and purchase warrants (on closing): $0.5 million
- Earnout: $4 million (subject to achieving financial targets)
As per the above, the acquisition was structured with cash, common shares, warrants and an earnout. The $4 million earnout is based on achieving earnings before interest, taxes, depreciation, and amortization (EBITDA) targets. The founders will remain with Aurora according to the press release.
Company products – BC Northern lights
company products – urban cultivator
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