The Globe and Mail reports in its Saturday edition that Aurora Cannabis has signed deals to acquire an initial minority share of Green Organic Dutchman Holdings Ltd. and to purchase up to 20 per cent of Dutchman's annual cannabis production.
A Canadian Press dispatch to The Globe says that Aurora plans to acquire a 17.62-per-cent stake in the privately held company for $55-million.
Aurora will also have the option to incrementally increase its ownership interest to 51 per cent once Dutchman meets certain corporate, operational, construction and financial milestones.
Dutchman is building a high-technology greenhouse in Valleyfield, Que., where it owns a 30-hectare property.
Under the proposed supply agreement, Aurora will have the right to purchase up to 20 per cent of Dutchman's annual production of cannabis from its Ancaster, Ont., and Valleyfield operations.
The supply contract also gives Aurora the right to purchase up to 33 per cent of the production at the two facilities if it increases its ownership interest to 31 per cent. Aurora closed Friday at $13.16, up 12 cents on the Toronto Stock Exchange.
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