MedReleaf Corp recently confirmed that it held talks with Aurora Cannabis Inc (OTCMKTS:ACBFF) regarding possible transactions. The company said that it regularly engages in discussions with different industry players as well as with ACBFF to find out about various alternatives in the cannabis business. It should be noted that while the discussion between these two companies was on shares were halted for some time.
The trading of shares resumed during mid-afternoon after both the companies declared that although they went through a session of discussion, the companies have not reached an agreement.
Aurora Showed Interested In Acquiring MedReleaf
According to a news release, MedReleaf although has been discussing with different companies, it is yet to sign an agreement with any particular company and cannot assure that such discussions will ultimately lead to any such agreement. It was reported earlier by a publication that Markham, Ontario-based MedReleaf was seeking possible suitors for a deal following which Aurora approached the company with an acquisition offer. And the discussion that recently took place between the two companies was in a way reviewing by the independent directors of the two companies to find out whether such a transaction was possible or not. However, no such agreement has been signed yet.
MedReleaf Wants To Consolidate In Growing Cannabis Market Of Canada
With the legalization of cannabis in Canada, the growers are facing a threat of oversupply of cannabis and the pricing pressure in the Canadian market. Experts believe that the move of MedReleaf to make it available for a suitor and its discussion with Edmonton- based Aurora is a part of its strategy to consolidate its position in the legal cannabis market space.
Companies in the business are trying their best to beat the competition with some adding scale to lower their price structures whereas others are looking forward to cash in on elevated valuations. With Health Canada issuing 104 licenses to grow and sell medical marijuana to patients or just to cultivate marijuana plant, competition in this field is indeed getting tougher. According to the latest figures of Health Canada, 500 applicants are in the pipeline, which means more number of licensed cultivators and sellers are going to enter this market.