Aurora Cannabis Inc. shares were up 1.72 percent today on news that it's buying a South American lab company.
In a $290-million deal that includes a share swap, the Canadian cannabis producer is taking over ICC Labs. It's a licensed producer and distributor of cannabinoid extracts, recreational cannabis, and industrial hemp products based in Uruguay.
ICC Labs is also a licensed producer of medicinal cannabis in Colombia.
Aurora's shares closed the day at $8.26 on the news that it's gaining a significant presence in South America, which is home to 420 million people.
ICC Labs said that after current greenhouse projects are completed in Uruguay and Colombia, it will produce more than 450,000 kilograms of cannabis per year. It already has two greenhouses of approximately 92,000 square feet, as well as more than 300 hectares of growing operations at three outdoor sites.
Uruguay has legalized cannabis and is the only country in the world that permits CBD-rich hemp to be grown commercially.
"ICC's new CBD extraction facility is strategically located approximately five minutes from the Canelones international airport and within Uruguay's 'Science Park' free trade zone, exempting facility exports from any applicable local tax on exports and imports," an Aurora news release stated.
Aurora isn't the only Canadian cannabis producer in the news today.
Nanaimo-based Tilray Canada Ltd. has entered into a supply agreement with 7ACRES, a wholly owned subsidiary of the Supreme Cannabis Company Inc. The value of the agreement is worth more than $2 million, according to Supreme.
Tilray Canada is a subsidiary of Tilray, which is listed on NASDAQ. It closed at US$84.50 today, up 8.49 percent.
When it went public in July, Tilray stock was originally priced at US$17, which means it's up almost 500 percent in less than two months.
In other weed-finance news, Aphria Inc. was up 6.53 percent to close at $21.70. The cannabis company with the largest market value, Canopy Growth Corporation, closed at $68.62, up 1.3 percent. And another large player, Cronos Group Inc., was up 0.82 percent to close at $15.93.