Canadian marijuana company Aurora Cannabis announced earlier this week that it has acquired Crescendo Therapeutics. The deal, worth an estimated $101 million, sees Aurora swallow up four of the Vancouver-based company’s products. The deal is slated to close early in the fourth quarter of 2019.
The deal will ensure that Canadian producers of CBD oil will have a global reach, as Crescendo produces products for the United States, Canada, and the other largest cannabis markets in the world.
CBD is a non-psychoactive compound found in the cannabis plant. It does not have the intoxicating properties of THC. Some pharmaceutical firms, such as GW Pharmaceuticals, claim to have cannabinoids, drugs made from CBD, that “can effectively treat and diagnose certain central nervous system disorders and neurological conditions.”
British Columbia-based Aurora, which now operates in eight countries, also announced this week that it had partnered with adult-use Canada beverage brand Mr. Laps to launch a line of cannabis products. It already makes several product lines under its Labs Select division, including cannabidiol-infused skincare products, cannabidiol candy, and other plant-based products.
Mr. Laps, which has a distribution network in Canada, runs most of its product lines through a “non-compete clause” that limits production and marketing at Crescendo as of June 2020. Aurora also agreed to put non-compete clauses into its agreements with its employees at Crescendo.
Aurora also said that it has signed a memorandum of
understanding with Swiss distributor, PharmaCann, to allow customers to buy
cannabis products through PharmaCann’s national presence. Aurora says that the
agreement will “enrich the ranks of Aurora’s supply chain for medical and
adult-use cannabis sales.”