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Aurora Cannabis Confirms Co. To Enter US Market; Will Acquire Mass Retail CBD Platform Reliva For ~$40M In Aurora Common Shares And Potential Earn Out Of $45M In Shares And Cash

All Share Transaction – Immediately Accretive to Shareholders on an Adjusted EBITDA Basis Profitable Today, Reliva Adds Strategic Entry to the U.S. that is Aligned to Aurora's Business Transformation

Benzinga · 05/20/2020 20:16
  • All Share Transaction – Immediately Accretive to Shareholders on an Adjusted EBITDA Basis
  • Profitable Today, Reliva Adds Strategic Entry to the U.S. that is Aligned to Aurora's Business Transformation Plan
  • Adds Miguel Martin, Veteran International Consumer Packaged Goods Executive to Aurora Management Team
  • Reliva Provides Aurora with Top Ranked Retail Hemp-Derived CBD Brand Currently Sold in Over 20,000 Mass Retail U.S. Locations

EDMONTON, May 20, 2020 /PRNewswire/ - Aurora Cannabis Inc. (the "Company" or "Aurora") ((NYSE, TSX:ACB), the Canadian company defining the future of cannabinoids worldwide, and Reliva, LLC ("Reliva") a leader in the sale of hemp-derived CBD products in the United States, are pleased to announce that they have entered into an agreement  pursuant to which Aurora will acquire all of the issued and outstanding membership interests of Reliva. Under the terms of the agreement, members of Reliva will receive approximately US$40 million of Aurora common shares.  The transaction also includes a potential earn-out of up to a maximum of US$45 million payable in Aurora shares, cash or a combination thereof, over the next two years contingent upon Reliva achieving certain financial targets. The structure of the earn-out is designed to align risk and reward between Aurora shareholders and Reliva management to focus on continued strong operational and financial execution. The transaction is expected to close, subject to customary closing conditions, in June 2020. It is anticipated that the transaction will be immediately accretive to Aurora on an Adjusted EBITDA basis, consistent with Aurora's objective to drive towards Adjusted EBITDA profitability in its fiscal first quarter of 2021.