ICC Labs, a licensed producer of medical cannabis in Uruguay and Colombia, received an interim order from the Supreme Court of British Columbia to hold a shareholders’ meeting to vote on a resolution to approve Aurora Cannabis to acquire all of ICC Lab’s outstanding shares. If the shareholders vote in favor of the approval, they will receive $1.95 per share—a 4% premium to the company’s closing on October 3.
Moving closer to Uruguay and Colombia
With this step, Aurora Cannabis (ACB) (ACBFF) has moved closer to having a presence in Uruguay and Colombia. The company’s board approved the deal unanimously and encouraged shareholders to vote in favor of the deal.
The markets in Uruguay and Colombia will give Aurora Cannabis access to medical cannabis users. Cannabis players (HMMJ) including Canopy Growth (WEED), Tilray (TLRY), and Aphria (APHQF) have taken steps to reach customers in international markets as well. Uruguay was the first country to legalize recreational cannabis before Canada. While recreational cannabis still isn’t legal in most global markets, medical cannabis has gained a regulatory foothold.
We think that despite the challenges of having recreational cannabis legal in several countries, cannabis companies have established a base. The companies hope that their presence in the markets will help advance their growth when recreational cannabis becomes legal.