Deloitte Legal Lithuania has advised Aurora Cannabis Inc. on its acquisition of 100% of the issued and outstanding shares in Agropro UAB and Borela UAB for approximately EUR 5.5 million. PwC Legal advised Agropro and Borela.
In addition, Aurora Cannabis will also refinance existing debt for about EUR 2 million and provide executive compensation and retention for EUR 1.5 million.
Aurora Cannabis is a Canadian-licensed medical marijuana producer and distributor, headquartered in Edmonton, that trades on the Toronto Stock Exchange. Aurora Cannabis has eight licensed production facilities, five sales licenses, and operations in 14 countries.
Agropro is a hemp seed contracting and processing company, and its sister company, Borela UAB, is a processor and distributor of organic hulled hemp seeds, hemp seed protein, hemp flour and hemp seed oil. It currently has 1,600 hectares under contract, potentially yielding more than 1 million kilogram of organic hemp with additional contracts available to expand to more than 3,000 hectares across Lithuania, Latvia, Estonia, and Poland.
Borela owns and operates a hemp grain processing facility. According to Deloitte, on February 1, 2018, Borela became the only European hemp company to receive a BRC quality certificate, enabling Borela to supply its product to supermarkets.
Deloitte reports that, in Agropro and Borela, Aurora Cannabis has acquired a substantial supply of organic hemp seed products, as well as the capacity to process the raw material into products, along with the international distribution channels to sell.
The Deloitte Legal team consisted of Associate Partner Simas Gudynas, Managing Associate Tomas Mieliauskas and Senior Associate Agne Vanagiene.
Editor's Note: After this article was published, CEE Legal Matters learned that the PwC Legal team was led by Partner Rokas Bukauskas, who was assisted by Senior Associates Justina Kaledaite and Evelina Kisieliute.