EDMONTON -- Aurora Cannabis Inc. says it is entering the U.S. market by acquiring hemp-based cannabidiol company Reliva LLC.
Edmonton-based Aurora will acquire all of the issued and outstanding membership interests of Reliva, while Reliva members will receive roughly US$40 million in Aurora's common shares.
If Reliva achieves certain financial targets, the transaction includes a potential earn-out of up to a maximum US$45 million payable in Aurora shares, cash or a combination over the next two years.
The transaction is subject to closing conditions, but is expected to be complete by June.
Aurora says it was attracted to Reliva because of its management team's experience selling and marketing regulated consumer packaged goods, its relationships with critical trade partners that provide a U.S. national distribution footprint and its financial discipline.
The deal comes months after Aurora embarked on a restructuring plan that involved taking $1 billion in writedowns and laying off 500 employees.
