Mergers and acquisitions: Cannabis company purchasing rivals

When a senior employee sends out a memo stating the company at which he is working needs to ramp up its buying, the company means business. A senior executive at Aurora Cannabis in Canada did just that recently, indicating that the company needed to step up its mergers and acquisitions efforts since the firm hadn't acquired any companies in "several hours." Aurora wants to get on the cannabis bandwagon and has been buying up companies in the hopes of being one of the nation's big pot players when Canada makes the drug recreationally legal in next summer.

But the executive said Aurora isn't planning on grabbing all small companies and that there will be room for all in the wake of pot becoming legal. Cannabis has been a hot commodity recently with 75 mergers and acquisitions this year of Canadian pot companies that are both privately and publicly. That number was 33 in 2016. 

Canada has the chance to pave the way in the trading of cannabis companies since pot is still illegal federally in the United States. In its most recent acquisition, Aurora purchased a pot company in Montreal for $25 million and made the news recently in its takeover bid for CanniMed Therapeutics, a rival company. If shareholders approve the hostile takeover bid, the production capacity for Aurora would reach about 135,000 kilos of pot per year.

The world of mergers and acquisitions can be extremely involved and complicated. A lawyer who is experienced in such aspects of business would be able to assist his or her client in the dynamics of these business deals in Canada. A lawyer would be able to provide his or her client with the legal guidance needed when making involved business decisions.

Source: calgaryherald.com, "Aurora goes on shopping spree, buying up cannabis rivals with investor windfall", Reid Southwick, Nov. 29, 2017

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