NEWS BRIEF

Cannabis companies MedReleaf, Aurora confirm merger talks, but no deal yet

Two of Canada’s leading marijuana producers, MedReleaf and Aurora Cannabis, confirmed they have held merger talks, but no agreement has been reached.

In separate statements issued Thursday, MedReleaf and Aurora acknowledged that discussions were underway.

Trading in both companies’ shares was halted temporarily on the Toronto Stock Exchange. MedReleaf is traded on the TSX as LEAF and Aurora as ACB.

MedReleaf said it “confirms that it engages from time to time in discussions with other industry players, including Aurora Cannabis, regarding various alternatives.”

Aurora issued a similar statement and confirmed that no agreement had been made.

After shares resumed trading Thursday, Aurora closed up less than 1% at 8.02 Canadian dollars and MedReleaf closed at CA$22.25, up 2%.

Across Canada, cannabis companies are gearing up for the launch of the country’s recreational market – expected to roll out later this year.

Ontario-based MedReleaf previously signed a deal to become a major supplier of medical marijuana products to a pharmaceutical distributor in Germany. The firm expects shipments to Cannamedical Pharma GMBH to commence in the coming weeks.

In April, Vancouver-based Aurora unveiled plans to build the 1.2-million-square-foot facility in Medicine Hat, Alberta.

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