Aurora Cannabis (TSX:ACB) and CannaRoyalty (CSE:CRZ) announced a binding term sheet in which Aurora will buy the exclusive Canadian license to use and commercialize pre-roll technology for a consideration of C$7 million in Aurora common shares.
As quoted in the press release:
“Pre-rolls are a rapidly growing, in-demand segment of the international cannabis market and the Wagner Dimas’s technology has substantial competitive advantages over peers in terms of throughput, quality and diversity,” said Terry Booth, CEO of Aurora. “This Agreement reflects Aurora’s strategy to continue broadening our high-quality product portfolio by expanding into value add products for both the medical and adult consumer markets. Wagner Dimas has a proven record of producing many of the leading pre-roll brands in a number of mature cannabis markets, and we look forward to introducing this high throughput, high-quality pre-roll technology to the Canadian market.”
Marc Lustig, CEO of CannaRoyalty, added, “The Agreement to transfer our Canadian license to the Wagner Dimas technology aligns with and advances our focused business strategy of building out our distribution and brand network in our core market of California. This successful liquidity event for one of our early investments validates our approach as a strategic investor in the cannabis industry, while at the same time providing us with equity exposure to Aurora’s future growth”
Unless otherwise agreed to by both parties, the Agreement will be closed within 15 business days of its signing.