Aurora Cannabis Pays C$26.5M for EU-GMP Facility; Sees Positive FY27 EBITDA
CGC•Aurora Cannabis paid C$26.5 million—including C$15 million cash and 2.4 million shares—for Safari Flower, adding a 59,000 sq ft EU-GMP Ontario facility and expecting positive adjusted EBITDA in FY27. A 30% veterans’ cut to C$6.00/gram will reduce revenue and push margins to mid-high 50% in FY27, partly offset by Germany and Poland growth.
1. Acquisition Details
Aurora Cannabis acquired Safari Flower Company for C$26.5 million, comprising C$15 million cash, 2.4 million common shares and C$2 million contingent payments tied to GMP certifications. The deal secures a 59,000 sq ft EU-GMP indoor cultivation and manufacturing facility in Ontario, reducing third-party sourcing risk and bolstering supply for Germany, Australia, Poland and the U.K.
2. Financial Impact and Outlook
Management projects the Safari facility to generate positive adjusted EBITDA in FY27, with added synergies in FY28 as proprietary genetics and cultivation practices are implemented. A parallel 30% cut in veterans’ reimbursement to C$6.00/gram is expected to lower revenue and push gross margins into the mid-to-high 50% range in FY27, partially offset by international expansion.
3. International Growth Strategy
Germany led international revenue growth in FY26, supported by core and premium product pricing stability and EU-GMP production capacity. Poland and Australia remain key drivers, with #1 and #3 proprietary cultivars by sales in Germany and a shift toward higher-value offerings in Australia, while facility expansions aim to double flower output by 1H FY27.
