ACB - Aurora Cannabis just bought MedReleaf Australia: find out more
2024-02-08 08:21:58 ET
Aurora Cannabis Inc (NASDAQ: ACB) is in focus today after buying the remaining 90% stake in MedReleaf Australia for about AU$50 million ($32.45 million).
Details of Aurora-MedReleaf transaction
The licensed cannabis producer paid $9.45 million in cash and the remaining in stock.
Aurora caught interest in buying MedReleaf because it’s currently the second largest player in medical cannabis in Australia. Miguel Martin – chief executive of the Edmonton-headquartered firm said in a press release today:
The acquisition represents a strategic milestone [and] demonstrates our commitment to investing in markets that offer opportunities for sustainable and profitable growth.
Wall Street currently has a consensus “hold” rating on Aurora Cannabis stock that has been in a sharp downtrend over the past five months.
Aurora Cannabis reported Q3 financial results today
Also on Thursday, Aurora Cannabis Inc reported record EBITDA on an adjusted basis for its third financial quarter. According to CEO Martin:
MedReleaf Australia is expected to be immediately accretive to adjusted EBITDA, while accelerating our path to generate positive free cash flow this calendar year.
Aurora Cannabis saw its international net medical cannabis revenue climb a whopping 41% on a year-over-year basis in Q3. Fiscal 2024 is on course to be its best year to date, as per the company’s earnings report today.
The Nasdaq-listed firm ended the third quarter with more than $200 million in cash and $7.3 million in convertible debt to be fully repaid in February.
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