Aurora Cannabis announced today its deal to take over medical marijuana company MedReleaf.
The deal between the two Canadian companies is valued at C$3.2 billion, making it the largest cannabis deal in history.
Aurora Cannabis, which is valued at $4.5 billion, will now offer MedReleaf shareholders 3.575 shares in Aurora in exchange for every share in MedReleaf they return.
"The Transaction brings together two leading operators with a total funded capacity of over 570,000 kg per year of high-quality cannabis, through nine facilities in Canada and two in Denmark," read today's press release.
“The two companies have established distribution agreements with Alberta’s Alcanna (formerly Liquor Stores), Quebec’s SAQ, Pharmasave, and Shoppers Drug Mart in Canada, among others."
The boards of both companies have already endorsed the deal, but their shareholders have to vote in favour of the deal in order to make it official.
The deal highlights an industry trending towards consolidation as companies try to streamline themselves before legalization takes place this summer.
On Monday, MedReleaf was valued at $25.47 a share on the TSX, while Aurora Cannabis finished the day with a $7.92 share price.