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Aurora Cannabis buys controlling stake in flower, seedling supplier Bevo Agtech

Aurora Cannabis' Aurora Sky facility in Edmonton, May 12, 2022. Global News

Aurora Cannabis Inc. has signed a deal to buy a controlling interest in Bevo Agtech Inc., a supplier of vegetable seedlings and flowers.

Under the deal, the cannabis company will acquire a 50.1 per cent stake in Bevo for $45 million plus up to an additional $12 million that is conditional on Bevo achieving certain financial milestones at its Site One facility in Langley, B.C.

Read more: Aurora Cannabis to close Aurora Sky facility in Edmonton

Bevo has also agreed to acquire the company’s Aurora Sky facility in Edmonton.

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In connection with the Aurora Sky transaction, Bevo will pay up to $25 million based on the achievement of certain financial milestones.

Click to play video: 'Aurora Cannabis closing Aurora Sky facility in Edmonton'
Aurora Cannabis closing Aurora Sky facility in Edmonton

Aurora chief executive Miguel Martin says the investment and collaboration will drive significant shareholder value and synergies for both companies.

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Read more: Aurora Cannabis reports $75M Q2 loss as revenues fall by 10%

Aurora announced plans earlier this year to close its Aurora Sky facility as part of changes at the company.

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