More extractions for RTI 07:52 AM EDT, 09/12/2018 (MT Newswires) -- Aurora Cannabis Inc. (ACB.TO) Wednesday said it has acquired Agropro UAB, Europe's largest producer, processor and supplier of certified organic hemp and hemp products, and has also purchased hemp processor and distributor Borela UAB for $9.5 million in cash and stock.
Under terms of the proposed transaction, Aurora paid $8.1 million in cash for the acquired companies and also issued $1.4 million of its common shares to the former owners. Aurora also will refinance about $3.1 million of existing Agropro and Borela debt and also provide a $2.3 million finder's fee.
The affiliated companies currently have about 4,000 acres under contract, potentially yielding more than 1,000,000 kilograms of organic hemp with additional contracts available to expand to more than 12,000 acres across Lithuania, Latvia, Estonia, and Poland. Borela's hemp grain processing facility in February became the only European hemp company to receive a BRC quality certificate, allowing it to supply supermarkets with its product. Borela also has received USDA Organic, Eco-Cert, as well as other certifications, enabling the company to market premium products across large markets.
Following the acquisitions, Aurora plans to extract, refine and produce the organic hemp biomass into a wide range of organic CBD-based wellness products.