Aurora Cannabis to increase hemp stake, buy Alberta producer

Canadian marijuana giant Aurora Cannabis is getting deeper into the hemp space, announcing Tuesday that it plans to acquire the rest of a hemp company it partially purchased last year.

Aurora said it will buy the remaining outstanding shares of Hempco Food and Fiber, which makes hemp foods and nutritional supplements in Nisku, Alberta.

Aurora, which already owns 52% of the company, agreed to pay 1.04 Canadian dollars (78 cents) per share, which values Hempco at roughly CA$63.4 million.

Hempco provides Aurora with raw hemp for CBD extraction and is expanding a CBD processing factory in Nisku.

Edmonton, Alberta-based Aurora has been flexing into the hemp space since at least 2017.

Last year, the company acquired two Lithuanian hemp producers, Agropro UAB, and its sister firm, Borela UAB.

Aurora trades as ACB on the New York Stock Exchange and Toronto Stock Exchange. Hempco trades on the TSX Venture Exchange as HEMP.