British Columbia-based cultivator Emerald Health Therapeutics signed a deal worth 90 million Canadian dollars ($70 million) to buy rival cannabis producer Agro-Biotech.
The agreement expands Emerald’s (TSXV: EMH) footprint into Quebec, Canada’s second largest province.
Based in Saint-Eustache, Agro-Biotech is one of six licensed marijuana producers in Quebec. The startup is on pace to have a 50,000-square-foot indoor cannabis cultivation facility completed by the end the year.
Under terms of the acquisition, the CA$90 million price tag for Agro-Biotech will be paid half in cash and half in shares.
Half the cash payment (or about CA$22.5 million) has already been paid. The deal is expected to close May 1, 2019, according to Emerald Health.
Emerald is part of the Emerald Health group, which includes a variety of companies the produce cannabis and cannabinoid products.