Cannabis seedlings are seen at the new Aurora Cannabis facility, Friday, November 24, 2017 in Montreal. Aurora Cannabis Inc. says it has signed a deal to acquire the remaining stake in Hempco Food and Fiber Inc. that it does not already own. THE CANADIAN PRESS/Ryan Remiorz
April 16, 2019 - 6:32 AM
EDMONTON - Aurora Cannabis Inc. plans to acquire the remaining 48 per cent of Hempco Food and Fiber Inc. that it does not already own through an exchange of shares.
Under a friendly agreement between the companies, Edmonton-based Aurora will pay the equivalent of $1.04 per Hempco share, payable in Aurora shares.
Hempco shares closed at 91 cents on the TSX Venture Exchange on Monday, while Aurora shares closed at $11.37 on the Toronto Stock Exchange.
Aurora already owns approximately a 52 per cent stake in Hempco, which makes hemp-based foods and nutritional supplements for people and animals.
Hempco provides Aurora with a low-cost, high-volume source of hemp for the extraction of CBD (cannabidiol), a substance with therapeutic properties that's also found in cannabis.
The proposed deal will require shareholder approval by two-thirds of the votes cast by shareholders as well as regulatory and court approvals and other customary conditions.
Companies in this story: (TSXV:HEMP, TSX:ACB)
News from © The Canadian Press, 2019