Splashy acquisitions came up in the cannabis industry this week as key players confirmed two major deals.
These significant announcements potentially signal that M&A activity has been reignited in the market.
Keep reading to find out more cannabis highlights from the past five days.
New merger brings together two Canadian cannabis entities
Zach George, CEO of SNDL, previously known as Sundial Growers, pointed to an existing business partnership as the bedrock behind the deal between SNDL and Valens. The executive said his company’s operations will be “transformed” by Valens’ procedures for cannabis product development and production.
“This powerful combination will result in the creation of a dominant vertically integrated company, exceptionally well-suited to weather the current cannabis environment and become a leader in the Canadian regulated products sector,” George said in a press released shared on Monday (August 22).
For his part, Valens CEO Tyler Robson said the deal will bring investors exposure to a revenue-generating cannabis company “trading well under its tangible book value.”
Deal gives Canadian producer non-cannabis exposure
Also this week, Aurora Cannabis (NASDAQ:ACB,TSX:ACB) announced it will buy a controlling interest in Bevo Agtech, a supplier of propagated vegetables and ornamental plants.
The Canadian cannabis producer will pay for this deal through an undisclosed subsidiary; it will cost approximately C$45 million, with up to an additional C$12 million paid over the next three years.
As part of the deal, Bevo will acquire Aurora’s grow facility, dubbed Aurora Sky, in Edmonton, Alberta.
“Bevo’s track record in generating not only positive Adjusted EBITDA but free cash flow, world class propagation expertise, and established distribution networks in Canada and the United States makes them an ideal strategic partner,” Miguel Martin, CEO of Aurora, said.
Cannabis company news
- TerrAscend (CSE:TER,OTCQX:TRSSF)completed an acquisition strategy worth nearly US$30 million for Michigan-based cannabis dispensary operator KISA Enterprises MI, which manages the Pinnacle chain of stores. The deal will bring six stores into the TerrAscend fold.
- Fire & Flower US Holdings, an America-based partner of Fire & Flower Holdings (TSX:FAF,OTCQX:FFLWF), completed a non-brokered private placement of unsecured convertible debentures worth US$50 million.
- Akanda (NASDAQ:AKAN)announced the appointment of Tom Flow and Steven George as chief operating officer and commercial director, respectively.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Image and article originally from investingnews.com. Read the original article here.