Aurora to enter U.S. market with $40 million of acquisition of CBD brand Reliva

Aurora to enter U.S. market with $40 million of acquisition of CBD brand Reliva

EDMONTON — Aurora Cannabis Inc. says it is entering the U.S. market by acquiring hemp-based cannabidiol company Reliva LLC.

Edmonton-based Aurora will acquire all of the issued and outstanding membership interests of Reliva, while Reliva members will receive roughly US$40 million in Aurora’s common shares.

If Reliva achieves certain financial targets, the transaction includes a potential earn-out of up to a maximum US$45 million payable in Aurora shares, cash or a combination over the next two years.

The transaction is subject to closing conditions, but is expected to be complete by June.

Aurora says it was attracted to Reliva because of its management team’s experience selling and marketing regulated consumer packaged goods, its relationships with critical trade partners that provide a U.S. national distribution footprint and its financial discipline.

The deal comes months after Aurora embarked on a restructuring plan that involved taking $1 billion in writedowns and laying off 500 employees.

This report by The Canadian Press was first published May 20, 2020.

Companies in this story: (TSX:ACB)

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

City of Red Deer down to one confirmed active case of COVID-19

18 new cases were confirmed across the province Saturday

Lacombe’s museums change summer operations due to COVID-19

Lacombe & District Historical Society hoping for pre-booked, members of the same household tours

Lacombe’s Midway Centre looking to attract tenants

Albertan economy, COVID-19 leading to difficulty finding suitors

Facing changes together: Your community, your journalists

The Lacombe Express covers the stories that matter to you and to our community

N.S. fire crews continue battling ‘out-of-control’ Porters Lake blaze

Word of the fire first emerged early Saturday afternoon

Technology, representation butt heads amid debate over resuming Parliament

The Liberals are now proposing four meetings a week until June 17

Procession for Snowbirds crash victim makes its way through Halifax

The 35-year-old military public affairs officer and Halifax native died in the crash

Who is at highest risk of exposure to COVID-19? Firefighters, drivers, pharmacists, cooks

Central Alberta firefighter says virus taking toll on mental health

The latest numbers on COVID-19 in Canada as of May 23

There are 83,621 confirmed and presumptive cases in Canada

Procession for Snowbirds crash victim to make its way through Halifax today

The military public affairs officer died in the Snowbirds Tutor jet crash in B.C. last Sunday

Employers worry about safety, cash flow, second wave in COVID-19 restart

Only eight per cent of employers were fully prepared to restart operations, survey finds

Central Alberta woman recognized by province for making hospital gowns

Northern Lights Volunteer Recognition program honours Christine Engel

Most Read