Terrapharma sells Greybeard and Being Swallow to Aurora for $38 million

Craft cannabis on Canada’s shelves in the legal hemisphere is a controversial term due to the inevitable fate suffered by much of the product. Corporations are skipping costs, which unfortunately undermines both quality and profitability in the long run. In a $38 million deal, Terrapharma, which is the parent of Being Cannabis and Greybeard under Thrive, is selling off so Aurora can make a profit.

Aurora saves herself again

But is the dissolution of other cannabis brands under Aurora and Big Bud in Canada, like Greybeard and Being, a necessary step?

In the press release, Aurora admits that world-class quality and innovation are key to a successful Horizon. After shares plummeted to pre-legalization levels, the deal is Aurora’s hopeful achievement of profitability through the press release’s desperate language. With Terrapharma sold out, its principal subsidiary, Thrive, will take control of Aurora’s portfolio.

Aurora will acquire all of the issued and outstanding shares of Terrapharma Inc. The tentative closing date for the transaction is Q4 2022, according to Aurora’s fiscal year.

dealing with genetics

Thrive gains access to Aurora’s extensive production capabilities. In exchange, Aurora will acquire Terrapharma’s and its subsidiary Thrive’s two core brands, Greybeard and Being Cannabis. The genetics are then transferred to Aurora’s wheelhouse.

In the press release, the genetic lineage holds promises, including an average THC output of more than 24%. Additionally, Thrive strains are said to be disease resistant and high yielding, which means lower production costs. However, the press release made no mention of terpene production, genetic stability, or consistency.

In return, Terrapharma will receive two direct earnings bonuses if it is able to meet established sales goals after the sale to Aurora. But even with Thrive at the forefront of operational control, will the bonus guarantee that Thrive’s production standards will survive a shift into Big Bud ownership?

Prosper Farmgate.

be gray beard and cannabis

Greybeard is an “award-winning” brand offering flowers and concentrates in Canada’s legal sector, a snail race. While Being Cannabis sells sublingual cannabinoid strips. Thrive also managed to open one of Ontario’s first farm-gate cannabis stores, a retail model sorely lacking anywhere else in Canada.

But as Canadian cannabis history has it, more and more craft cannabis is being sold out to one of the few corporate giants. Aurora will just swallow another smaller fish in a multi-million dollar deal.