Deloitte advised Aurora Cannabis Inc. on its investment in Agropro UAB and Borela UAB
Deloitte Financial Advisory, Legal and Tax teams advised Canadian company Aurora Cannabis Inc. on its investment in Lithuanian entities Agropro UAB, a hemp seed contracting and processing company, and Borela UAB, a distributor of organic hulled hemp seeds, hemp seed protein, hemp flour and hemp seed oil. Together, Agropro UAB and Borela UAB represent Europe’s largest producer, processor and supplier of organic hemp products.
Aurora Cannabis Inc. purchased 100% of the issued and outstanding shares of Agropro UAB and Borela UAB for total cash consideration of €5,364,000 and common shares of Aurora Cannabis Inc. equivalent to €960,000, based on the 5-day VWAP. In addition, Aurora Cannabis Inc. will also refinance existing debt totalling €2,076,000 and provide executive compensation and retention totalling €1,517,400.
Aurora Cannabis Inc. with funded capacity in excess of 570,000 kg per year and sales and operations in 14 countries across five continents is one of the world’s largest and leading cannabis companies. It is headquartered in Edmonton, Alberta, Canada and is listed in Toronto Stock Exchange (TSX).
Agropro UAB, a hemp seed contracting and processing company, and its sister company Borela UAB, a processor and distributor of organic hulled hemp seeds, hemp seed protein, hemp flour and hemp seed oil, currently has 1,600 hectares under contract, potentially yielding more than 1,000,000 kg of organic hemp with additional contracts available to expand to more than 3,000 hectares across Lithuania, Latvia, Estonia, and Poland.
Borela UAB owns and operates a hemp grain processing facility and on February 1, 2018, became the only European hemp company to receive a BRC quality certificate, enabling Borela UAB to supply supermarkets with its product.
With Agropro UAB and Borela UAB, Aurora Cannabis Inc. has acquired a very substantial supply of organic hemp seed products, as well as the capacity to process the raw material into products, and the international distribution channels to sell these.
Deloitte services included financial, tax and legal due diligence of target companies and transaction advisory services, including drafting transaction documents and participation in negotiations with the vendors.
Deloitte Financial Advisory team: Linas Galvele (Partner, Lithuania), Marius Stalenis (Director, Lithuania), Vytautas Ciapas (Manager, Lithuania).
Deloitte Legal team: Tomas Mieliauskas (Managing Associate, Lithuania), Simas Gudynas (Associate Partner, Lithuania), Agne Vanagiene (Senior Associate, Lithuania).
Deloitte Tax team: Kristine Jarve (Partner, Lithuania), Viktorija Urbyte (Manager, Lithuania).