Craft cannabis on Canada’s shelves in the legal hemisphere is an arguable term due to the inevitable fate much of the product undergoes. Corporate companies skip costs which sadly undermines quality as well as viability in the long run. In a $38M deal, Terrapharma, parenting Being Cannabis and Greybeard under Thrive, sells out so Aurora can make profit.
By acquiring Terrapharma, is Aurora saving itself again?
But is dissolving more brands of cannabis under Aurora and Big Bud in Cannada, such as Greybeard and Being, a necessary move?
In the press release, Aurora admits premium quality and innovation are keys to a successful horizon. After stocks crashed to pre-legalization value, the deal is Aurora’s hopeful reach for profitability by the desperate language of the news release. As Terrapharma sells out, their main subsidiary, Thrive, will take control of Aurora’s portfolio.
Aurora will acquire all issued and outstanding shares of Terrapharma Inc. The tentative date of closure for the deal is within Q4 2022 according to Aurora’s fiscal year.
Thrive will gain access to Aurora’s deep production output. In return, Aurora will absorb Terrapharma and it’s subsidiary, Thrive’s two main brands, Greybeard and Being Cannabis. Following this, genetics will be transferred to Aurora’s wheelhouse.
In the press release, the genetic line comes with promises, including a greater than 24% average THC output. Additionally, Thrive’s cultivars are allegedly disease resistant and high yielding which means lower production costs. The news release, however, made no mention of terpene production, genetic stability, or consistency.
In return, Terrapharma will receive two direct earnount bonuses if it can achieve set revenue goals after it sells out to Aurora. Even with Thrive at the helm of operational controls, though, will the bonus guarantee that Thrive’s production standards survive a shift to Big Bud ownership?
Greybeard and Being Cannabis
Greybeard is an ‘award-winning’ brand that offers flowers and concentrates in Canada’s legal sector, a snail’s race. Whereas Being Cannabis sells sublingual cannabinoid strips. Thrive also managed to open one of the first farm-gate cannabis stores in Ontario, a retail model sorely lacking everywhere else in Canada.
But as the Canadian cannabis story goes, more craft cannabis sells out to one of few corporate giants. Aurora will simply swallow yet another smaller fish with a multi-million dollar deal.