Aurora acquires stake in Dutch company Growery

Aurora Cannabis has announced that it has signed an agreement to acquire a significant stake in Growery B.V., a Netherlands-based company licensed to participate in experimentation with legal cannabis cultivation in the country.

The amount of the investment has not been made public.

Aurora has indicated that the agreement is structured in such a way that it intends to invest an intangible amount in cash, part of which is due and payable in advance and the remainder dependent on Growery achieving certain milestones.

It will also provide Growery with a secured loan to build a cultivation site, finance initial operations and provide technical and operational support through its Netherlands-based medical cannabis research center.

«Our investment in Growery is a significant step forward for our global recreational cannabis strategy. The Netherlands is set to be the largest federally-regulated recreational market outside Canada, and it's proof that our success in the medical market in Europe is transferable to recreational markets,« said Miguel Martin, CEO of Aurora Cannabis.

«Aurora's global leadership is underlined by a proven track record in regulatory compliance, testing and commitment to science. With similar values and a commitment to excellence, we look forward to working with Growery to enter the Dutch market.»

Experimenting with legal cannabis cultivation must last at least four years, during which the Dutch government will assess whether the test should be extended nationwide. The expected demand during the Controlled Cannabis Supply Chain Experiment (CCSC) is around 30,000 kilograms of dried flowers per year. If CCSC were to be extended nationwide (from around 80 coffeeshops in 10 selected municipalities to the nearly 600 coffees that exist today), the Netherlands would need around 200,000 kilograms of dried flowers a year to meet demand.