Just days after Aurora Cannabis Inc. announced a supply deal with Mexico's Farmacias Magistrales SA, the Canadian cannabis company said it has entered a letter of intent to buy the company in a stock deal. Farmacias is Mexico's first and for now only federally licensed importer of raw materials containing THC, the psychoactive ingredient in cannabis, and has facilities to store and distribute medical products with more than 1% THC, Aurora said in a statement. The deal will give the company access to a market with more than 130 million people. Farmacias has about 80,000 retail outlets for selling CBD products and 500 pharmacies and hospitals to sell THC products. Aurora will pay for the deal with stock based on a valuation of the proforma revenue distribution projections of Farmacias. Aurora shares rose 1.2% premarket, but are down 23.8% in 2018, while the S&P 500 has fallen 1.5%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
December 10, 2018 10:33 ET (15:33 GMT)
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