Aurora bought CanniMed for roughly $1 billion barely a few weeks ago. That was the largest acquisition in the cannabis industry. Now, according to market capitalization, the second biggest marijuana company will soon acquire the third biggest cannabis producer in Canada:
Aurora Cannabis, one of Canada’s largest licensed weed producers has scooped up rival cannabis producer MedReleaf in a $3.2 billion all-stock deal that sets the stage for Aurora to become the world’s biggest legal weed producer.
The next part is quite funny:
Combined, Aurora and MedReleaf have the funded capacity to produce 570,000 kg per year of cannabis through nine facilities in Canada and two in Denmark, far surpassing the likes of Canopy Growth Corporation, the country’s biggest weed producer which is currently licensed to produce 31,000 kg of weed and weed-related products.
The author just compared the future unlicensed capacity of Aurora to the supposedly current licensed production of Canopy. What's funny is that the first number might not materialize while the second number is false.
Canopy Growth is currently licensed to produce 31,000 kilograms of marijuana and related products, and aims to triple that by July next year, the deadline the federal government has given provinces to make pot legal for all.
The deal gives Canopy 450,000 square feet of greenhouses that can be immediately added to its existing 350,000 square foot facility in Niagara-on-the-Lake, Ontario. It is also building an additional 200,000 square feet of greenhouse capacity on its existing property.
That information is from Sep. 7, 2017. Today, Canopy Growth is in the process of finishing 6 million sq. ft. of total capacity. Bruce Linton, the CEO of Canopy Growth, hasn't been explicit and precise about the total yearly production of his company. He has only stated that it'll be in the hundreds of thousands of kilograms.
Anyhow, now the battle is set for the heavyweight title: Canopy vs. Aurora. Let's see who sells the most in 2019. We'll know the top line by February 2020.
The War of the Words has already begun.