Aurora Cannabis strikes offer to offer growing centers, file recommends

Canadian manufacturer Aurora Cannabis has an arrangement in concept to cost least 2 growing centers in Canada that were closed previously this year, Marijuana Service Daily has actually discovered.

The 2 structures– one in Saskatchewan and another in Alberta– are valued on paper at 12 million Canadian dollars ($ 9.4 million). It is uncertain whether they would be cost that quantity.

The info about the offer and the centers is consisted of in a file and e-mails acquired by MJBizDaily

The interactions information a CA$ 28 million financing pitch by New York-based service advisory company Teneo on behalf of an unknown customer thinking about purchasing the growing centers.

Teneo stated in the file its customer is an “emerging multi-country operator in the cannabis area,” though the company did not divulge the business.

Teneo agents did not right away return a question from MJBizDaily

Among the e-mails being flowed with the file keeps in mind that Teneo’s “customer remains in agreement to obtain these centers.”

The “chance” explained in the financing pitch– called “Task Oktober”– lists 3 possessions associated with the pending deal.

They consist of 2 centers in Canada along with what Teneo calls “Task Europe,” referred to as “a managing interest in a certified German API (active pharmaceutical active ingredient) importing and circulation service.”

The file states: “The business will become a pre-eminent multi-country operator providing cannabinoid APIs to Europe by means of Canada, developing a proforma service with run-rate EBITDA in excess of $100 million.”

The file does not recognize who owns the possessions.

Nevertheless, Aurora Cannabis seems the owner of a minimum of 2 of the possessions.

Among the structures portrayed in the Task Oktober file, called “Task Meadow,” equals in look and capability requirements to Aurora’s growing center in Saskatoon, Saskatchewan.

The residential or commercial property was amongst the possessions Aurora acquired in 2018 as part of the CA$ 1.2 billion acquisition of Saskatchewan’s CanniMed Rehabs.

The Task Oktober file worths that residential or commercial property at CA$ 6 million.

An Aurora Cannabis representative stated the business “had no info to share at this phase.”

” More to our statement in June of the shuttering of non-core centers, we continue to actively market the closing centers for sale,” the representative stated.

Another property portrayed in the file, described as “Task Mountain,” seems the Alberta business’s “Aurora Mountain” center in Cremona, Alberta.

The file worths that residential or commercial property at CA$ 6 million.

The 2 centers were amongst the closures Aurora revealed in June 2020 to cut expenses.

The relocation comes as big Canadian cannabis manufacturers seek to sell possessions that were constructed or gotten in the frothy days of the cannabis bubble– typically at considerable premiums.

However manufacturers have actually had a tough time recovering expenses– typically getting half, or less, of what they had actually initially paid.

Aurora has actually currently unloaded among its big greenhouses in Exeter, Ontario, for what seemed approximately half of its CA$ 17 million listing cost.

The having a hard time business likewise just recently shuttered a huge CA$ 250 million greenhouse in Alberta “forever.”

MJBizDaily solely reported previously today that Aurora decreased production at its flagship marijuana greenhouse in Edmonton, Alberta, to just a quarter of its capability while laying off more than 200 staff members.

Aurora trades as ACB on the Toronto Stock Market and the New York Stock Exchange.

Matt Lamers is Marijuana Service Daily‘s global editor, based near Toronto. He can be reached at [email protected].

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