On March 22, 2022, Aurora Cannabis Inc. finalized an agreement to acquire TerraFarma Inc., the parent company of Thrive Cannabis, for an initial consideration of $38 million in cash and shares, plus potential earnout payments. The deal, aimed at enhancing Aurora's position in the Canadian market, was announced with expectations to close in Aurora's fiscal Q4 2022, pending standard regulatory and shareholder approvals.

The acquisition integrates Thrive's team and its innovative product lines, including premium cannabis concentrates and craft dried flower from its flagship brand, Greybeard Cannabis Co., into Aurora's operations. This strategic move is projected to yield immediate positive Adjusted EBITDA impacts and support Aurora's profitability targets for the first half of fiscal 2023.

Thrive, known for its high-quality standards and cultivation techniques, contributes two acclaimed brands to Aurora's portfolio. Greybeard is recognized for its high-terpene, high-potency concentrates and AAAA quality dry flower, while Being Cannabis offers wellness-oriented sublingual THC and CBD strips.

The transaction introduces a skilled management team to Aurora, promising to enhance product consistency and innovation. Thrive's positive standalone EBITDA and robust product pipeline are set to bolster Aurora's product offerings and market strategy.

Legal advisory for the deal was provided by McMillan LLP for Aurora, with Lazard Canada Inc. serving as the financial advisor. Osler, Hoskin & Harcourt LLP advised TerraFarma on the transaction.