Canadian medical cannabis producer Aphria Inc. is set to acquire Nuuvera Inc. for $826 million as part of its efforts to expand into Europe, Africa, and the Middle East, where Nuuvera already has a strong presence.
Aphria will pay $8.50 per share to Nuuvera shareholders – a 21.4 percent premium over the stock’s Friday close price. The price represents a 30.5 percent premium over Nuuvera’s 10-day weighted average stock price.
Nuuvera has relationships in Germany, Italy, the United Kingdom, Spain, Israel, Malta, Lesotho, and Uruguay, while Aphria currently has agreements in Australia.
“This transaction, which builds on a long-standing relationship between the two companies, brings together our top tier ability to grow high-quality cannabis at a low-cost with Nuuvera’s expansive international network, expertise in processing, and access to industry leading technology.” – Vic Neufeld, Aphria CEO, in a press release
The deal still needs final approval from the Superior Court, two-thirds vote from Nuuvera shareholders, and approval from the Toronto Stock Exchange.
It’s the second major merger of Canadian cannabis companies in a week — last Thursday, Canadian producers Aurora Cannabis and CanniMed announced an $852 million deal, lauded as the richest in the cannabis industry to date. The moves come less than six months before Canada is expected to roll out federal recreational cannabis legalization.