MedReleaf

History

2019: Aurora Cannabis purchased MedReleaf for $2.51 billion

In the middle of March, 2019 it was announced the largest merge of producers of marijuana. The Canadian Aurora Cannabis buys the compatriot MedReleaf for $2.51 billion.

As a result of consolidation of assets the company capable to produce about 570 thousands kg of cannabis a year will appear. Its production capacities will be at nine enterprises in Canada and two in Denmark. The united company will have distribution networks in Canada and also in Europe, South America and Australia.

The largest merge of producers of marijuana is announced

Merge of Aurora Cannabis and MedReleaf it was announced in several months after the Parliament of Canada approved the bill of legalization of use of marijuana in the recreational purposes. The volume of illegal market of such drug in the country was estimated then at $7 billion therefore the authorities decided to be engaged in education of the public to reduce the harm done to them. The bill controls and regulates as it is possible to grow up, extend and sell drug.

Marijuana got under prohibition in Canada in 1923, however in 2001 in the country permitted to use it in the medical purposes.

The CEO of Aurora Terry Booth said that consolidation of the market of marijuana will continue. He promised purchases in several weeks, but noted that nothing equal on scale to the transaction with MedReleaf is expected.^[1]

In March, 2019 merge of producers of marijuana in the USA was also announced the largest. Harvest Health & Recreation purchased competitors — Verano Holdings — for $850 million.

 As a result of the transaction Harvest will own 200 objects among which there are 123 points of sale of cannabis in 16 states. At the end of 2019 the company will have 70 points of sale, 13 plantations and 13 plants, said in the message of Harvest.  According to  Bloomberg, thanks to the transaction Harvest will become one of the largest operators of marijuana in the USA.

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