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Aurora Cannabis Inc. has signed a deal to buy a minority stake in Liquor Stores N.A. Ltd., which plans to launch a brand of cannabis retail stores.
Under the deal, Aurora will acquire a 19.9 per cent stake in the company for $103.5 million through a non-brokered private placement.
It will also have an ability to increase its interest in Liquor Stores up to 40 per cent with an additional investment.
Liquor Stores plans to use the money to establish and launch a brand of cannabis retail outlets.
The retailer says it will convert some of its existing stores into cannabis outlets and establish new locations.
Liquor Stores will also use a portion of the money to strengthen its existing liquor retail brands by renovating its existing outlets and for general corporate purposes.
Companies in this story: (TSX:ACB, TSX:LIQ)
