Aurora Acquires MedReleaf Australia for AUD$50M, Boosts EBITDA

Ticker: ACB · Form: 6-K · Filed: 2024-02-08T00:00:00.000Z

Sentiment: bullish

Topics: acquisition, medical-cannabis, international-expansion, profitability

TL;DR

**Aurora just bought MedReleaf Australia for AUD$50M, making them a global medical cannabis giant and aiming for quick profit.**

AI Summary

Aurora Cannabis Inc. (NASDAQ: ACB) announced on February 8, 2024, that it has acquired the remaining 90% equity interest in MedReleaf Australia for an enterprise value of AUD$50 million. This acquisition, paid with AUD$9.45 million in cash and the balance in shares, makes Aurora the largest global medical cannabis company in nationally legal markets and positions it as the #2 player in Australia's rapidly growing ~AUD$400 million medical cannabis market. This move is expected to immediately boost Aurora's Adjusted EBITDA and accelerate its goal of achieving Positive Free Cash Flow in calendar 2024, which is crucial for investors looking for profitability.

Why It Matters

This acquisition significantly expands Aurora's global footprint and market share in the lucrative medical cannabis sector, potentially leading to increased revenue and profitability, which is vital for shareholder value.

Risk Assessment

Risk Level: low — The acquisition is expected to be immediately accretive to Adjusted EBITDA and accelerate free cash flow, reducing financial risk.

Analyst Insight

A smart investor would view this acquisition as a strategic move to consolidate market leadership and improve profitability, potentially signaling a good entry point or reason to hold ACB stock, especially given the positive outlook on Adjusted EBITDA and Free Cash Flow.

Key Numbers

Key Players & Entities

Forward-Looking Statements

FAQ

What was the total enterprise value of the MedReleaf Australia acquisition?

The total enterprise value of the MedReleaf Australia acquisition was AUD$50 million, subject to customary adjustments, as stated in the news release dated February 8, 2024.

How much cash did Aurora Cannabis Inc. pay as part of the acquisition?

Aurora Cannabis Inc. paid AUD$9.45 million in cash, with the balance of the purchase price satisfied by the issuance of shares, according to the filing.

What percentage of MedReleaf Australia did Aurora acquire in this transaction?

Aurora acquired the remaining approximately 90% equity interest of Indica Industries Pty Ltd (MedReleaf Australia) that it did not previously own.

What is the expected impact of this acquisition on Aurora's financial metrics?

The transaction is expected to be immediately accretive to Adjusted EBITDA and accelerate the Company's plan for Positive Free Cash Flow generation in calendar 2024.

What is MedReleaf Australia's market position in the Australian medical cannabis market?

MedReleaf Australia holds the #2 position in medical cannabis within the rapidly growing ~AUD$400 million Australian market.

From the Filing

0001279569-24-000120.txt : 20240208 0001279569-24-000120.hdr.sgml : 20240208 20240208070718 ACCESSION NUMBER: 0001279569-24-000120 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20240208 FILED AS OF DATE: 20240208 DATE AS OF CHANGE: 20240208 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AURORA CANNABIS INC CENTRAL INDEX KEY: 0001683541 STANDARD INDUSTRIAL CLASSIFICATION: MEDICINAL CHEMICALS & BOTANICAL PRODUCTS [2833] ORGANIZATION NAME: 03 Life Sciences IRS NUMBER: 000000000 STATE OF INCORPORATION: A1 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-38691 FILM NUMBER: 24606838 BUSINESS ADDRESS: STREET 1: 2207 90B STREET SW CITY: EDMONTON STATE: A0 ZIP: T6X 1V8 BUSINESS PHONE: 604-362-5207 MAIL ADDRESS: STREET 1: 409 GRANVILLE STREET STREET 2: SUITE 1700 CITY: VANCOUVER STATE: A1 ZIP: V6C 1T2 6-K 1 aurora_6k.htm FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of February 2024 Commission File No. 001-38691 AURORA CANNABIS INC. (Translation of registrant's name into English) 3498 63 Avenue, Leduc, Alberta, Canada T9E 0G8 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F Form 20-F ☐ Form 40-F ☒ SUBMITTED HEREWITH Exhibits Description 99.1 News Release dated February 8, 2024 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AURORA CANNABIS INC. /s/ Glen Ibbott Glen Ibbott Chief Financial Officer Date: February 8, 2024 EX-99.1 2 ex991.htm NEWS RELEASE DATED FEBRUARY 8, 2024 Exhibit 99.1 Aurora Cannabis Acquires MedReleaf Australia NASDAQ | TSX: ACB Aurora becomes the largest global medical cannabis company operating in nationally legal markets. MedReleaf Australia holds the #2 position in medical cannabis within the rapidly growing ~AUD$400 million 1 Australian market. Transaction is expected to be immediately accretive to Adjusted EBITDA 2 and accelerate the Company's plan for Positive Free Cash Flow 2 generation in calendar 2024. EDMONTON, AB, Feb. 8, 2024 /CNW/ - Aurora Cannabis Inc. (the " Company " or " Aurora ") (NASDAQ: ACB) (TSX: ACB), the Canada based leading global medical cannabis company, is pleased to announce that a wholly-owned subsidiary of the Company has acquired the remaining approximately 90% equity interest of Indica Industries Pty Ltd (" MedReleaf Australia ") that Aurora did not previously own, at an enterprise value of AUD$50 million, subject to customary adjustments (the "Transaction"). Aurora paid AUD$9.45 million in cash with the balance of the purchase price satisfied by the issuance of common shares of Aurora (the " Aurora Shares "). MedReleaf Australia is a leading distributor of medical cannabis products and holds the #2 position in the Australian medical cannabis market. This market is currently estimated to be worth approximately AUD$400 million 1 and has quickly become one of the largest nationally legal global medical cannabis markets outside of Canada. The medical cannabis market in Australia is characterized by a clinician-led traditional pharma-like product distribution model that aligns with Aurora's operational success in other key global medical cannabis markets such as Germany. Since first partnering with MedReleaf Australia in 2017, Aurora has actively contributed to the region's recent growth, leveraging the Company's pharmaceutical grade cultivation and global approach to product innovation. The Transaction is expected to provide a meaningful platform for Aurora to continue growing its leading global medical cannabis position in Australia a

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