Hemp heavyweights announced strategic investment

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In Canada, Aurora Cannabis is taking a 19.9% stake in Hempco Food and Fiber Inc., one of the world’s largest producers of industrial hemp products, for $3.2 million.

Hempco’s product lines include bulk and packaged food products, such as hemp protein powder, hemp seed nut/hearts, and hemp seed oil; hemp fiber; and functional food and nutraceuticals. Its products are distributed in seven countries.

Subject to customary conditions, including Hempco shareholder approval and the negotiation and execution of an option agreement, Aurora will be granted an option to acquire certain shares from the majority owners of Hempco, which, upon exercise, would bring Aurora’s total ownership interest in Hempco to 50.1% on a fully diluted basis.  Aurora also gains the right to appoint two members to Hempco’s Board of Directors.

The deal will enable Hempco to accelerate commercial development of hemp-based dietary supplements. Aurora is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations.