Aurora Cannabis (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P) has signed a binding share purchase agreement to acquire all of the issued and outstanding common shares of privately-held Chemi Pharmaceutical, an Ontario-based laboratory providing analytics services to the pharmaceutical and cannabis industries.
Located adjacent to Pearson Airport in Mississauga, Ontario, Chemi provides specialized cannabis testing across a broad set of parameters, including cannabinoid and terpene content.
The company did not disclose the acquisition price but notes that the transaction will consist of an undisclosed cash payment and share consideration of 83,299 shares paid on closing and 41,649 payable upon achievement of certain milestones.
Chemi has a Health Canada Drug Establishment license to perform certified GMP compliant quality control analytical testing. In addition, the company received USFDA accreditation for its facility, which is the gold standard for global pharmaceutical testing.
Aurora says that the acquisition provides a critical prerequisite for applying for a Cannabis Drug License, which is required for the development of cannabis therapies within the global medical cannabis market.
Chemi will be integrated into the company’s subsidiary Anandia Laboratories, expanding Anandia’s analytics capabilities to meet client demand and diversifying its specialized testing services for both the medical and the upcoming edible and derivatives markets.
“The acquisition of Chemi will enable Anandia to extend our best-in-class testing services to a broader group of licensed producers and scale alongside our current client base while providing the scientific capabilities to establish an early mover advantage in the upcoming cannabis edibles testing market,†Anandia President John Coleman states.
“We look forward to integrating the Chemi team into our operations and working together to deliver the greatest scientific integrity to our clients,†Coleman added.
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