TORONTO — Licensed marijuana producer Aphria Inc. has signed an agreement to buy medical cannabis firm Nuuvera Inc. in a cash-and-stock deal that it says values the company at $826 million.
The deal builds on a partnership between the companies as it combines Aphria’s production with Nuuvera’s expertise in cannabis processing and extraction. The combination will also help grow Aphria’s international footprint.
Under the terms of the deal, Nuuvera shareholders will receive $1 in cash plus 0.3546 of an Aphria share for each share they hold. Based on Aphria’s 10-day volume weighted average price of $21.15, the offer is worth $8.50 per share.
Nuuvera shares closed at $7 on Friday, while Aphria shares finished last week at $20.16.
The transaction is subject to customary closing conditions including approval by Nuuvera shareholders.
Assuming Aphria closes its acquisition of Broken Coast Cannabis Inc. that it also agreed to buy using stock and cash, Nuuvera shareholders will own approximately 14.8 per cent of the combined company.
Companies in this story: (TSX:APH, TSXV:NUU)
The Canadian Press