In late August, here at AskBrokers, we wrote about potential m&a in the Cannabis space about to pick-up. Today Aurora (ACB CN) announced that they have acquired South American focused ICC Labs (ICC CN) for a $220m deal, paying 34% premium for the company. This is the 10th deal Aurora (CAN CN) has done recently. The company CEO said to Bloomberg;
“ICC is an ideal partner for Aurora to establish leadership in the South American cannabis market, delivering clear first-mover advantage on a continent with over 420 million people. We feel a significant sense of urgency to rapidly establish a powerful global footprint. We see ICC as the jewel of the South American market. This is going to be our anchor in South America and we have very big plans for that continent”
ICC has got more than 70% market-share in Uruguay, the first country in the world to legalize recreational cannabis. In addition, it also holds a license to produce medical marijuana in Colombia and to export cannabidiol from Mexico.
ICC have like most other Cannabis companies had a good share price development this year.
As noted earlier, keep an eye on this space and companies within it for various trading opportunities as the whole sector is very active.