Aurora Cannabis Inc. has signed an agreement to acquire marijuana company ICC Labs Inc. in an all-stock deal it valued at $290 million.
READ MORE: Aurora Cannabis to buy MedReleaf in all stock deal worth $3.2 billion
Under the friendly agreement, ICC shareholders will receive 0.2448 of an Aurora share for each ICC share making the deal worth $1.95 per share.
ICC shares closed at $1.79 on the TSX Venture Exchange on Friday.
READ MORE: Aurora Cannabis calling Edmonton home with its world HQ
Aurora says ICC has over 70 per cent market share in Uruguay, where cannabis is legal for adult consumer use. ICC also holds licences in Colombia for the production of medical cannabis.
The transaction is subject to court approval and a two-thirds majority vote by ICC shareholders.
READ MORE: Liquor Stores plan for Alberta retail pot outlets boosted by Aurora Cannabis investment
Union Group International Holdings Ltd., which holds about a 29 per cent stake in ICC, has agreed to support the deal.
Watch below: With marijuana legalization less than two months away, municipalities are starting to lay down laws regarding who can smoke it and where, but not everyone is on the same place. Sarah Kraus explains.