Lenders give consent
On November 1, Aurora Cannabis (ACB) announced that it received consent from ICC Labs’ lenders to acquire the latter in a development that was announced earlier in October.
ICC Labs is a licensed producer of medical cannabis in Uruguay and Colombia. ICC Labs received an offer of $1.95 per share from Aurora Cannabis—a 4% premium to the company’s closing on October 3. Companies (HMMJ) including Aurora Cannabis, Canopy Growth (WEED), Tilray (TLRY), and Cronos Group (CRON) have moved quickly to acquire the cannabis industry’s market share outside Canada.
Aurora provides the strategic rationale
In a press release, Aurora Cannabis provided insight into its rationale for acquiring ICC Labs. The company stated that the acquisition “will create a strong foundation for expansion” in South America through ICC Labs’ product portfolio and well-spread distribution channel in South American and global markets.
The deal hasn’t been approved yet by ICC Labs’ shareholders. A special meeting will be held on November 6 to urge shareholders to approve the arrangement between Aurora Cannabis and ICC Labs. The company’s board approved the deal unanimously and encouraged shareholders to vote in favor of the deal.
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