EDMONTON, AB, July 24, 2023 /PRNewswire/ – Aurora Cannabis Inc. (the “Company” or “Aurora”) (NASDAQ: ACB) (TSX: ACB), the Canadian company opening the world to cannabis, announced today that a wholly-owned subsidiary of the Company has closed the sale of its Medicine Hat, Alberta facility (the “Aurora Sun Facility“) on July 21, 2023 to Bevo Farms Ltd. (“Bevo Farms“), a wholly-owned subsidiary of Bevo Agtech Inc. ( “Bevo“). The sale of the Aurora Sun Facility was completed via Bevo Farms’ acquisition of one of Aurora’s wholly-owned subsidiaries (the “Aurora Sun Transaction“). Aurora has a controlling interest in Bevo, one of the largest suppliers of propagated vegetables and ornamental plants in North America.
Up to $15 million could be payable over time by Bevo Farms to Aurora in connection with the Aurora Sun Transaction, based on Bevo Farms successfully achieving certain financial milestones at the Aurora Sun Facility.
“I am pleased that this transaction will achieve the dual objectives of improving Aurora’s cash flow, while benefitting Bevo as they proceed with the expansion of their business,” said Aurora’s CEO Miguel Martin. “Bevo has successfully repurposed the Aurora Sky facility in Edmonton, and we’re excited to further support their continued growth. Bevo’s acquisition of the Aurora Sun facility further demonstrates the close synergies between our companies, and the value that our partnership creates for shareholders.”
Leo Benne, CEO of Bevo, added, “Bevo’s ability to deliver propagated plants directly from Medicine Hat to the Alberta greenhouse industry and beyond delivers a win for the Alberta greenhouse industry, the City of Medicine Hat and its residents, for Bevo, and for Aurora. We would like to express our gratitude to the City of Medicine Hat for their essential contributions to this transaction. We look forward to further developing our partnerships in Alberta in the years to come.”
- Accelerates Bevo’s plans to increase revenue and earnings, which will be fully consolidated in Aurora’s results due to Aurora’s controlling interest
- Builds on Bevo management’s strong track record of profitable growth and combined 85 years of agricultural experience to expand their vegetable and floral propagation production footprint, allowing the company to further extend its established distribution reach
- Expected reduction of ~$2 million annual carrying costs associated with maintaining the Aurora Sun Facility as an idle asset
