Article by CBC News
Aurora Cannabis Inc. has inked a deal to buy a minority stake in an Edmonton-based liquor store corporation which plans to launch a brand of cannabis retail stores across Western Canada.
Under the deal, Aurora will acquire a 19.9 per cent stake in the Liquor Stores N.A. Ltd. for $103.5 million through a non-brokered private placement, where a company sells stock directly to private investors to raise capital.
Aurora, an Alberta-based medical marijuana company, will also have an ability to increase its interest in Liquor Stores up to 40 per cent with an additional investment.
Liquor Stores plans to use the money to establish and launch a brand of cannabis retail outlets.
The retailer says it will convert some of its existing stores into cannabis outlets and establish new locations.
Liquor Stores will also use a portion of the money to strengthen its existing liquor retail brands by renovating its existing outlets and for general corporate purposes.
‘Retail footprint in Western Canada’
“The private placement with Liquor Stores is transformational in scale and scope for Aurora, Liquor Stores and the cannabis industry in Canada, providing the opportunity for our companies to establish a leading private retail footprint in Western Canada,” Terry Booth, CEO of Aurora said in a news release.
“This is an extremely significant step in our corporate development, as we prepare with our partners at Liquor Stores to bring the Aurora Standard in product quality, customer care and strategy execution to the pending legal consumer cannabis market,” he said.