Report: Aurora Cannabis in talks to buy Uruguay-based ICC Labs

(This story has been updated from an earlier version.)

Alberta-based Aurora Cannabis is reportedly in negotiations to purchase ICC Labs, a licensed integrated cannabis company in Uruguay.

In a press release, ICC Labs declined to comment on any specific negotiations that may be ongoing.

The deal could be a significant change in a jurisdiction that, despite being the first in the world to federally legalize recreational cannabis, has encountered many difficulties implementing its adult-use framework.

According to the Búsqueda newspaper, the deal would include ICC’s recreational and medical operations in Uruguay, as well as planned facilities in Colombia, which the company received a license for in early 2018.

ICC Labs is one of only two companies with a license to grow cannabis for Uruguay’s recreational market. For the three-month period ended March 31, the company reported recreational sales of $164,126.

Uruguayan authorities, including the government’s anti-money laundering agency, still must review and approve the transaction the origin of the funds being used for it.

ICC Labs trades on the Canadian Venture Exchange under the ticker symbol ICC, and its stock rose 12% to 1.65 Canadian dollars ($1.26) after the news appeared in Búsqueda.

Aurora Cannabis is traded on the Toronto Stock Exchange under the ticker symbol ACB.