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Aurora to enter U.S. market with acquisition of CBD brand Reliva


May 21, 2020
By The Canadian Press

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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.

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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.