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Aurora Cannabis Acquires MedReleaf Australia
ACBAurora(ACB) Prnewswire·2024-02-08 11:45

Core Viewpoint - Aurora Cannabis Inc. has acquired the remaining 90% equity interest in MedReleaf Australia for an enterprise value of AUD50million,positioningitselfasthelargestglobalmedicalcannabiscompanyinlegallyoperatingmarkets[2][5][9].CompanyOverview−AuroraCannabisisaleadingglobalmedicalcannabiscompanybasedinCanada,withafocusonbothmedicalandconsumermarkets[10].−Thecompanyoperatesundervariousbrands,includingMedReleaf,CanniMed,andAurora,andiscommittedtohigh−qualitycannabisproducts[10].TransactionDetails−TheacquisitionofMedReleafAustraliainvolvedacashpaymentofAUD50 million, positioning itself as the largest global medical cannabis company in legally operating markets [2][5][9]. Company Overview - Aurora Cannabis is a leading global medical cannabis company based in Canada, with a focus on both medical and consumer markets [10]. - The company operates under various brands, including MedReleaf, CanniMed, and Aurora, and is committed to high-quality cannabis products [10]. Transaction Details - The acquisition of MedReleaf Australia involved a cash payment of AUD9.45 million and the issuance of approximately 69.5 million common shares of Aurora [2][9]. - MedReleaf Australia is a significant player in the Australian medical cannabis market, which is valued at approximately AUD400million[2][3].MarketPositionandGrowth−TheAustralianmedicalcannabismarketisrapidlygrowing,characterizedbyaclinician−leddistributionmodelthatalignswithAurora′soperationalstrategiesinothermarketslikeGermany[3][7].−MedReleafAustraliageneratedtrailing12−monthnetrevenueofapproximatelyAUD400 million [2][3]. Market Position and Growth - The Australian medical cannabis market is rapidly growing, characterized by a clinician-led distribution model that aligns with Aurora's operational strategies in other markets like Germany [3][7]. - MedReleaf Australia generated trailing 12-month net revenue of approximately AUD40 million as of December 31, 2023, and was adjusted EBITDA positive [8]. Strategic Rationale - The acquisition strengthens Aurora's presence in Australia, enhancing its global cannabis leadership and aligning with its strategy to invest in sustainable growth markets [5][7]. - The transaction is expected to improve revenue contributions and gross margins, further aligning Aurora's Australian operations with its profitable international markets [7][8]. Future Outlook - The transaction is anticipated to be immediately accretive to Adjusted EBITDA and will support Aurora's goal of achieving positive free cash flow in calendar 2024 [2][5][8].