Aurora Cannabis said that a wholly-owned subsidiary of the company has acquired the remaining approximately 90% equity interest of Indica Industries Pty Ltd (MedReleaf Australia) that Aurora did not previously own, at an enterprise value of AUD$50 million, subject to customary adjustments (the "Transaction"). Aurora paid AUD$9.45 million in cash with the balance of the purchase price satisfied by the issuance of common shares of Aurora (the "Aurora Shares").
MedReleaf Australia is a distributor of medical cannabis products and holds the #2 position in the Australian medical cannabis market. This market is currently estimated to be worth approximately AUD$400 million1 and has quickly become one of the largest nationally legal global medical cannabis markets outside of Canada.
The medical cannabis market in Australia is characterized by a clinician-led traditional pharma-like product distribution model that aligns with Aurora's operational success in other key global medical cannabis markets such as Germany. Since first partnering with MedReleaf Australia in 2017, Aurora has actively contributed to the region's recent growth, leveraging the Company's pharmaceutical grade cultivation and global approach to product innovation. The Transaction is expected to provide a meaningful platform for Aurora to continue growing its leading global medical cannabis position in Australia and other APAC countries.