Aurora Cannabis purchases controlling interest in Bevo

Aurora Cannabis, a Canadian company, announced in a press release that a wholly-owned subsidiary of the Company has acquired a controlling interest in Bevo Agtech Inc. ("Bevo"), the sole parent of Bevo Farms. Bevo is, per the release, "one of the largest suppliers of propagated vegetables and ornamental plants in North America."

Concurrent with closing of the Bevo Transaction, Bevo entered into an agreement to acquire the Company's Aurora Sky facility in Edmonton, Alberta through the acquisition of one of Aurora's wholly-owned subsidiaries. 

The deal, the release states, allows "Aurora to immediately benefit from a profitable, cash flow positive and growing business, and may have the potential to drive long term value to Aurora's existing cannabis business via the application of Bevo's industry leading plant propagation expertise " Aurora, through its wholly-owned subsidiary, will acquire 50.1% of Bevo's outstanding common shares, take a controlling position on Bevo's board of directors and financially consolidate Bevo. Bevo's experienced management team are to remain significant shareholders and stay in place to embark on a robust growth plan, including the use of the Aurora Sky facility for orchid cultivation and vegetable propagation.

Founded in 1986, Bevo operates 63 acres of greenhouse in British Columbia, Canada; is led by a management team with over 85 years of agricultural experience, and supplies greenhouses, nurseries, field farms and wholesalers. 

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Photo by Kym MacKinnon on Unsplash

Source: Produce Grower