Aurora Cannabis (TSX: ACB) has sold what was at one time to be a flagship facility operated by the company in southern Alberta.
The Aurora Sun facility, located in Medicine Hat, Alberta, has been sold to that of Bevo Farms. The transaction was conducted via the sale of an Aurora subsidiary that owned the facility to that of Bevo.
It’s currently unclear just how much the company received from the sale, with the company declaring it receive “up to $15 million,” dependent upon certain milestones being achieved at the facility.
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The strange terms of the facility sale appears to be a result of Aurora owning a controlling interest in Bevo Agtech, the parent company of Bevo Farms. In August 2022, Aurora took a 50.1% in the vegetable and ornamental plant grower for $45 million. As part of that deal, the firms Edmonton facility, Aurora Sky, was sold to Bevo.
READ: Aurora Cannabis Acquires Majority Stake In Former Zenabis Subsidiary Bevo Farms
As a result of the controlling interest, revenue and earnings generated by Bevo are consolidated on Aurora’s balance sheet – but it also means that the “sale” amounts to a reshuffling of the facilities ownership amongst Aurora’s interests. The shuffle of ownership meanwhile is expected to reduce annual carrying costs for Aurora by $2 million.
Aurora Cannabis last traded at $0.67 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
