Four days after its $525 million takeover, Nuuvera Inc. has been rebranded to Aphria International Inc.
The newly rebranded smaller subsidiary will focus on markets abroad such as Italy, Austria, and Germany, the Financial Post reported on Tuesday.
Aphria CEO Vic Neufeld said his company will take over Nuuvera’s Canadian operations, including supply contracts in New Brunswick and Nova Scotia.
“They were ahead of the curve in terms of scoping out strategic countries,” said Neufeld.
“What they’ve lined up in terms of non-binding letters of intent, we are now taking over and trying to move them across the line to make them binding LOIs.”
While the takeover deal was finalized last week, the news did not help Aphria’s share price. This is possibly due to Aphria learning that Nuuvera had 40 percent less cash in the bank than previously indicated.
Neufeld, meanwhile, said Aphria can buttress what was “missing” for Nuuvera, “a supply change.”
The deal will allow Nuuvera to continue focusing on its international expanding. Nuuvera is currently competing with other companies for a Germany cultivation license.
Neufeld hopes the deal will go through in the upcoming weeks or months.
“It’s probably the most lucrative medical cannabis country in the world, given the socialized medicine coverage for cannabis. It is huge. That country alone pays for the entire acquisition.”
Prior to the announcement of the takeover, Nuuvera acquired an Italian import license and a GMP-certified facility in Malta.[share-btn]