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The deal gives Aurora the cannabis producer with the longest track record in the industry. CanniMed’s predecessor was the sole supplier to Health Canada before the current medical marijuana licensing regime was implemented.

CanniMed has also demonstrated success in developing and monetizing value-added products, Stanley added, noting that 57 per cent of the latest quarter’s sales came from oils rather than dried flower. These capabilities could help Aurora as cannabis companies race to develop pill-form cannabis amid growing interest in the drug’s use for medical applications.

CanniMed has more than 200 employees, while Aurora has more than 450, said Battley. Aurora does not expect to cut jobs, but rather ramp up hiring, he added.

Battley also expects Zettl to come on board for at least a transition period, and perhaps beyond that.

The deal also means CanniMed will abandon its plans to acquire the Tragically Hip-backed Newstrike Resources Ltd., whose shareholders had already voted in favour of a takeover by CanniMed.

CanniMed chief executive Brent Zettl said he was angling for a three-way deal that would include Newstrike as well.

“I think there is still some open-mindedness … It’s just that we didn’t get to a commercial agreement on that.”

CanniMed will pay a $9.5-million break fee to Newstrike as a result of its decision, though its stock tumbled as much as 25 per cent after the deal was announced.

Newstrike’s chief executive Jay Wilgar says that while the view may be that his company was “left at the altar”, this was a “mutual decision” and things have changed since its deal with CanniMed was announced.

“Newstrike has received its sales license, which is a huge step,” he said.

“We are in a very strong position right now, as a standalone.”

Companies in this story: (TSX:CMD, TSX:ACB, TSXV:HIP, TSX:APH, TSX:WEED)