Aurora Cannabis to buy remaining interest in Hempco Food and Fiber
Cannabis seedlings are shown at the new Aurora Cannabis facilty, Friday, November 24, 2017 in Montreal. Aurora Cannabis Inc. THE CANADIAN PRESS/Ryan Remiorz
The Canadian Press
Published Tuesday, April 16, 2019 9:41AM EDT
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.