Aurora Cannabis Sells Huge Ontario Greenhouse for a Third of Purchase Price
Canada’s Aurora Cannabis is selling one of its massive greenhouses at a bargain basement price. The greenhouse in Exeter, Ontario is, according to Marijuana Business Daily, being sold for a third of the original purchase price paid by Aurora. The article says that Canadian cannabis producers overspent on greenhouse space in 2017 and 2018 and are now paying the real price for those bad deals.
In addition to the offer Aurora accepted for the property being one-third of what they originally paid for it, the price they are reportedly taking is half the asking price of $17 million (CAD) ($12.1 million USD). The 1-million-square-foot facility was purchased by MedReleaf in 2018 for $26 million (CAD), just before MedReleaf was purchased by Aurora for $3.2 billion (CAD).
The purchase price for the MedReleaf sale does not include the substantial investment that would have been necessary to retrofit the facility to produce cannabis. The current sale is part of Aurora’s previously-announced restructuring plan to shore up capital expenditures.