FP says Liquor Stores sells 19.9% interest to Aurora

FP says Liquor Stores sells 19.9% interest to Aurora

2018-02-06 09:22 ET - In the News

See In the News (C-LIQ) Liquor Stores NA Ltd

The Financial Post reports in its Tuesday, Feb. 6, edition that Aurora Cannabis agreed on Monday to acquire a 19.9-per-cent interest in Liquor Stores N.A. The Post's Barry Critchley notes that Aurora's interest could grow to 40 per cent.

Aurora will pay $298-million (in total, if everything works out) in cash and is buying its interest at a healthy premium to the market. Aurora is making its investment in two stages: $103.5-million now and the rest in stages, some of which requires shareholder approval.

The financing package also includes warrants, which if exercised, would raise a further $160-million. Some of the initial proceeds will be used "to establish and launch a leading brand of cannabis retail outlets," while the rest will be used to renovate existing liquor store outlets.

In a note Russell Stanley at Echelon Wealth Partners described the transaction as "probably the strongest vertical integration move we have seen a cannabis company undertake."

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Liquor Stores N.A. Ltd

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