Canadian firm Aurora Cannabis Inc. announced on Tuesday it had acquired Thrive Cannabis parent company TerraFarma Inc. in a cash and stock deal initially worth $38 million. Thrive will also be eligible for up to $20 million in shares, cash, or both if it reaches revenue targets within two years of the transaction.
Thrive is best known for its flagship adult-use brand, Greybeard Cannabis Co., which was recognized as the top-recommended brand by Canadian budtenders in 2021 and was the 2021 winner of Best Concentrate from the Kind Magazine Awards, as voted for by budtenders.
Aurora CEO Miguel Martin described Thrive’s track record as “seldom found elsewhere in the Canadian market.”
“They are truly exceptional cultivators who have gained trust with consumers and developed products that have been recognized and acclaimed by Canadian budtenders and industry peers. We see a unique opportunity to leverage their expertise to deliver near and long-term benefits for both our recreational and medical markets.” — Martin in a press release
Geoff Hoover, Thrive CEO, said the combining of the companies “will be transformative.”
“We are excited to be joining a team that shares our vision for delivering the highest quality, premium cannabis products to consumers in a way that generates sustainable profitability,” he said.
The transaction is expected to close, subject to customary closing conditions, in Aurora’s fiscal Q4 2022 and the firm anticipates that the deal will provide immediate positive adjusted EBITDA to Aurora, and support the company’s path to adjusted EBITDA profitability in the first half of fiscal 2023.
“This transaction supports our path to profitability while ensuring that we are strategic in our M&A activity,” Martin said in a statement. “Thrive’s achievement of positive standalone EBITDA, combined with their exceptional operational and brand capabilities, truly set them apart, and we look forward to leveraging their expertise as we embark together on Aurora’s path to profitability.”
Get daily cannabis business news updates. Subscribe
End