ACB · Aurora Cannabis Inc.

Aurora Cannabis has executed a strategic acquisition of Safari Flower Company, an established EU GMP certified cannabis cultivator and manufacturer, for $26.5 million in total consideration. The transaction structure involves a cash payment of $15 million at closing plus the issuance of 2,417,180 common shares, with an additional $2 million contingent payment subject to certain conditions. This acquisition provides Aurora with a 59,000 square foot, purpose-built EU GMP certified indoor cultivation and manufacturing facility in Ontario, Canada, which will provide incremental capacity aligned with the company's existing operations. According to management, the strategic rationale centers on expanding EU GMP capacity to support the rapidly growing international medical cannabis market, with the increased capacity specifically targeted to supply key international markets including Germany, Australia, Poland, and the UK. Executive Chairman and CEO Miguel Martin emphasized the company's intention to leverage its plant science and operational expertise to increase the supply of high quality, EU GMP manufactured flower, enhancing Aurora's leadership in expanding, high margin, and highly regulated markets. The company expects the transaction to deliver positive Adjusted EBITDA contributions beginning in fiscal year 2027, with incremental benefits in fiscal year 2028 and beyond as these assets are optimized within Aurora's supply network. Management also highlighted plans to realize operational efficiencies, improve cultivation yields, and support commercial execution in high-margin international markets through the application of Aurora's expertise to the acquired operations.