Aurora invests in American hemp by acquiring Reliva CBD

Aurora Cannabis enters the U.S. market after announcing the acquisition of Reliva in a $40 million transaction. Reliva products are sold in over 20,000 outlets in the U.S., and the company has the second-largest market share in the world. CBD of the country.

Aurora a declared that Reliva «stood out from a long list of potential partners» due to its positive EBITDA, adherence to «regulatory, testing and compliance protocols,» their management team's «extensive sales and marketing experience,» and their strong relationships with «key business partners that provide a national distribution footprint in the U.S.»

Michael Singer, Aurora's executive chairman and interim CEO, said the partnership «will create an international cannabinoid leader that we believe can generate solid revenues and profitable growth».

Miguel Martin, CEO of Reliva, described the acquisition as «an important opportunity to accelerate Reliva's sales growth in the United States and internationally».

The deal, which marks Aurora's first foray into the US cannabis industry, is expected to close in June.

In the second fiscal quarter of 2020, Aurora reports net losses of around €905 million for net revenues of €44 million. The company's international medical cannabis revenues fell from around €3.5 million in the fourth quarter of 2019 to around €1.4 million in the last quarter.

Last summer, the company announced the creation of Aurora Hemp following the acquisition of Hempco Food and Fibre Inc. in a €41.5 million share deal.

Despite heavy losses and a positive EBITDA requirement by 2021 as part of its debt management plan, Aurora has retained the confidence of some major investors such as the Swiss National Bank.