Canadian marijuana producer Aurora Cannabis Inc. (ACB - Get Report) announced Monday that it was bolstering its presence in the western part of the country through the purchase of privately held British Columbia-based Whistler Medical Marijuana.
The companies have entered into a letter of intent that will see Aurora acquire all issued and outstanding shares of Whistler for about $175 million.
Whistler is one of Canada's most recognized brands and is one of the country's original 10 licensed cannabis producers as well as the first licensed producer to obtain organic certification.
"This transaction adds an iconic, organic certified BC-based brand with exceptional traction and a significant price premium in both the medical and retail markets," said Terry Booth, CEO of Aurora. "We intend to accelerate the completion of Whistler's Pemberton expansion project, and leverage our domestic and international distribution channels to increase market reach for their exceptional products."
Meanwhile, Whistler brass said it sees this as an opportunity to take advantage of Aurora's increasing domestic and international reach.
"With its commitment to the highest product quality standards, as well as its large footprint in both the Canadian and international cannabis markets, Aurora is the ideal partner for Whistler to enhance our growth and margin profile," said Whistler CEO Christopher Pelz.
Aurora Cannabis shares were up 5.2% in trading Monday.