Aurora Cannabis Inc. is bolstering its premium pot strategy by acquiring TerraFarma Inc., the parent company of Thrive Cannabis.
The deal announced Tuesday will see Thrive amalgamate with a subsidiary of Aurora, which will acquire all of TerraFarma’s issued and outstanding shares in exchange for $38 million in cash and Aurora shares.
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.
READ MORE: Aurora Cannabis reports $75M Q2 loss as revenues fall by 10%
The deal — nicknamed Project Willow — will help Aurora double down on premium and craft products, so it can reach profitability by the first half of its fiscal 2023, but Aurora’s chief executive said the transaction is really about harnessing Thrive’s talented staff.
“Brands are moving too fast. The consumers are moving too fast,” said Miguel Martin.
“The only thing that’s really consistent right now is really good people and Thrive has that in spades.”
Simcoe, Ont.-based Thrive is known for its premium craft cannabis products, which include concentrates, dried flower and sublingual strips sold under the Greybeard Cannabis Co. and Being Cannabis brands.
The company was also Ontario’s first licensed producer to open a farmgate cannabis shop, where pot products are sold at the site where they’re made.
Thrive says it decided to sell after spending…
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Aurora Cannabis Inc. is bolstering its premium pot strategy by acquiring TerraFarma Inc., the parent company of Thrive Cannabis.
The deal announced Tuesday will see Thrive amalgamate with a subsidiary of Aurora, which will acquire all of TerraFarma’s issued and outstanding shares in exchange for $38 million in cash and Aurora shares.
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.
READ MORE: Aurora Cannabis reports $75M Q2 loss as revenues fall by 10%
The deal — nicknamed Project Willow — will help Aurora double down on premium and craft products, so it can reach profitability by the first half of its fiscal 2023, but Aurora’s chief executive said the transaction is really about harnessing Thrive’s talented staff.
“Brands are moving too fast. The consumers are moving too fast,” said Miguel Martin.
“The only thing that’s really consistent right now is really good people and Thrive has that in spades.”
Simcoe, Ont.-based Thrive is known for its premium craft cannabis products, which include concentrates, dried flower and sublingual strips sold under the Greybeard Cannabis Co. and Being Cannabis brands.
The company was also Ontario’s first licensed producer to open a farmgate cannabis shop, where pot products are sold at the site where they’re made.
Thrive says it decided to sell after spending…
