Aurora said the acquisition will provide several strategic and financial benefits, including a U.S. management team that has strong global CPG backgrounds and a leading market position in hemp-derived CBD in the US.
Over a year after Aurora Cannabis publicly talked about entering the US market, the company has now taken this step: Aurora will take over CBD maker Reliva for $ 40 million. "Reliva [also] has access to 20,000 retail locations and even more important strong relationships with the leading wholesalers and distributors in the U.S". "Certainly, the consumer CBD industry faces temporary challenges in the U.S., but the industry has long-term upside, valuations have pulled back, and we think Reliva has a unique channel and price positioning that allowed it to perform quite well pre-COVID", Zuanic wrote. "But in a growth industry, we also judge companies based on the platforms they are building for future growth", said the note. We welcome Miguel Martin and his team to Aurora and look forward to the opportunity to increase our operating scale, worldwide reach, and product and brand diversity as we drive. profitability.
Under the terms of the agreement, members of Reliva will receive approximately $40 million of Aurora common shares.
Proven management team with extensive experience selling and marketing regulated consumer packaged goods (CPG). The company said Reliva stood out from other CBD sellers given its focus on regulatory controls, national distribution footprint and "financial discipline".
"Together with Reliva, Aurora is expected to be positioned as a meaningful player in the United States, the world's largest cannabinoid market", the company said.