Aurora Cannabis has purchased two companies as part of its strategy to tap Canada’s rapidly growing market for patients who cultivate their own medical marijuana and ultimately for consumers who choose to grow their own cannabis after recreational legalization takes effect next summer.
Aurora, traded as ACB on the Toronto Stock Exchange, is shelling out 3.9 million Canadian dollars ($3.1 million) in cash to acquire BC Northern Lights Enterprises and Urban Cultivator, both based in British Columbia.
The transactions also involve CA$500,000 worth of Aurora common shares and warrants and potentially another CA$4 million, based on performance milestones for the two companies.
From Jan. 1 to June 30, the number of Canadians registered to grow their own medical cannabis or those designated as growers for others skyrocketed 242%, to 6,800.
The industry expects that growth to continue, with further home grow expansion anticipated after recreational cannabis is legalized June 1.
The federal government has proposed allowing up to four plants per household for recreational use. So far, Ontario has indicated it’s open to the idea, while Quebec might ban home cultivation.
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