Canadian cannabis giant Aurora Cannabis announced March 22 that it plans to acquire TerraFarma, the parent company of Thrive Cannabis.

Thrive, founded in 2018 and based in Simcoe, Ont., is known for its flagship adult-use brand, Greybeard Cannabis Co., which produces small-batch craft cannabis flower and concentrates.

Aurora will acquire all of TerraFarma’s issued and outstanding shares for $38 million in cash and Aurora shares, according to a press release announcing the deal.

Thrive will also be eligible for up to $20 million in shares, cash or both, if it reaches certain revenue targets within two years.

"As consolidation among licensed producers accelerates, it's vital that any transactions we make, now or in the future, be strategic, accretive, and centered around adding exceptional talent and brands that align with our path to profitability," Aurora CEO Miguel Martin said in a public statement. "In these respects, Geoff and the Thrive team have a track record seldom found elsewhere in the Canadian market. They are truly exceptional cultivators who have gained trust with consumers and developed products that have been recognized and acclaimed by Canadian budtenders and industry peers. We see a unique opportunity to leverage their expertise to deliver near and long-term benefits for both our recreational and medical markets.”

The transaction is expected to close in Q4 of Aurora’s 2022 fiscal year and help Aurora reach profitability by the first half of its 2023 fiscal year, according to the press release.

Aurora plans to put the Thrive team in charge of its Canadian adult-use portfolio in an effort to advance its shift in focus to products such as dried flower, pre-rolls, vapes and concentrates.

"We are excited to be joining a team that shares our vision for delivering the highest quality, premium cannabis products to consumers in a way that generates sustainable profitability," Thrive CEO Geoff Hoover said in a public statement. "We look forward to combining our best-in-class products and innovation pipeline with Aurora's depth of operational capabilities, robust route to market and shared focus on superior science and genetics that is critical for advancement in this sector. This combining of two great companies will be transformative."