LEAMINGTON, Ont. — Licensed marijuana producer Aphria Inc. has signed a deal to buy Broken Coast Cannabis Inc., a cannabis producer on Vancouver Island, in a transaction it valued at $230 million in cash and stock.
Under the agreement, Aphria (TSX:APH) will pay up to $10 million in cash with the remainder in shares based on a deemed price of $15.09 per share.
Each of the three co-founders of Broken Coast are expected to remain with the company.
Broken Coast operates an indoor cannabis production facility on Vancouver Island that it is expanding.
As part of the transaction, Aphria has approved a further expansion project that is expected to increase facility’s annual capacity to 10,500 kilograms per year.
The deal is anticipated to close by Jan. 31.
The Canadian Press