Aurora Cannabis (TSX:ACB) announced the acquisition of Agropro UAB a processor and supplier of certified organic hemp and hemp products and Borela UAB a hemp processor and distributor.
As quoted in the press release:
Agropro, a hemp seed contracting and processing company, and its sister company Borela UAB (Borela), a processor and distributor of organic hulled hemp seeds, hemp seed protein, hemp flour and hemp seed oil, currently has 1,600 hectares (4,000 acres) under contract, potentially yielding more than 1,000,000 [kilograms] of organic hemp with additional contracts available to expand to more than 3,000 hectares across Lithuania, Latvia, Estonia, and Poland.
Previously, the companies were focused exclusively on the production and sale of hemp seed-based products to markets across Europe, North America and Asia. Each year, very substantial quantities of [cannabidiol] CBD containing hemp biomass were left on the field unutilized.
Post-acquisition, Aurora intends to extract, refine and productize the organic hemp biomass into a wide range of organic CBD-based wellness products to generate new and significant revenue streams in this burgeoning market. With increasing recognition of the medical and general health benefits of CBD-based products, Aurora continues executing on a CBD-focused strategy that covers the entire value chain, from supply, through genetics research and clinical trials, to product development and distribution to various domestic and international markets across five continents.