Aurora Cannabis Buys C$26.5M Safari Flower for 59,000 sq ft EU-GMP Facility
SNDL•Aurora Cannabis acquired Safari Flower Company in April for C$26.5 million (C$15 million cash, 2.4 million shares, C$2 million contingent) to add a 59,000 sq ft EU-GMP indoor facility supporting Germany, Australia, Poland and U.K. growth. Management forecasts positive adjusted EBITDA in FY27 and margin improvements through proprietary genetics.
1. Safari Flower Acquisition
Aurora Cannabis completed its April purchase of Safari Flower Company for C$26.5 million—comprising C$15 million cash, 2.4 million common shares and up to C$2 million contingent on GMP certifications. This adds a 59,000-square-foot EU-GMP indoor cultivation and manufacturing facility in Ontario.
2. EU-GMP Capacity and Margin Control
The newly acquired facility reduces reliance on third-party sourcing risk while bolstering capacity for key international markets, including Germany, Australia, Poland and the U.K. Management expects positive adjusted EBITDA contributions in FY27 and further margin gains in FY28 from integrating proprietary genetics and optimized cultivation practices.
3. International Market Expansion
Germany drove the largest international revenue growth in FY26, with Aurora retaining leadership in core and premium segments despite value-segment pricing pressure. Two proprietary cultivars ranked #1 and #3 by sales, and the Leuna facility expansion—due mid-FY27—is set to double annual flower output to meet rising European medical cannabis demand.
4. Canadian Reimbursement Headwind
Effective April 1, veterans’ reimbursement rates dropped from C$8.50 to C$6.00 per gram, cutting related revenues by roughly 30%. Management notes this pricing reset will lower adjusted gross margins into the mid-to-high 50% range in FY27, partially offset by international growth.
