Aurora Cannabis has acquired two United Kingdom-based medical marijuana companies in a £2.1 million cash deal, giving the Canadian producer direct control over additional import, distribution and pharmacy operations in the country.
Aurora announced that it purchased 100% of Internode Pharma Limited, a licensed importer and wholesaler, and HAP Pharma Limited, which operates a licensed pharmacy. The companies operate an import and distribution facility and a virtual pharmacy in Birmingham.
The acquisition gives Aurora greater control of its UK supply chain, from cultivation through delivery to patients, while reducing its reliance on third-party distributors.
Aurora paid the selling shareholders £2.1 million in cash at closing, subject to certain post-closing conditions.
The company said it expects the transaction to contribute positively to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in future quarters through operational efficiencies and lower third-party distribution costs. Aurora also said it will evaluate additional investments to expand its UK distribution capacity as patient demand grows.
“The UK represents an exciting opportunity for us,” said Aurora Executive Chairman and CEO Miguel Martin, citing growing patient demand and acceptance of the company’s products.
Martin said the acquisitions will give Aurora greater flexibility to serve UK patients while helping the company expand its share of the international medical marijuana market.
Aurora described the UK as one of Europe’s largest medical marijuana markets, with a population of roughly 70 million people.
