Aurora Cannabis Inc. (TSXV: ACB) announced just before Friday’s closing bell that it plans to acquire Germany’s Pedanios GmbH, a wholesale importer, exporter, and distributor of medical cannabis in the European Union (EU). Aurora Cannabis’ stock had been halted for more than 24 hours pending this news.

For Aurora Cannabis, the cost of this acquisition will be approximately 3,421,756 common shares of Aurora, priced at $2.14 per share, to holders of Class B securities of Pedanios. As well, a total consideration of approximately $13,565,000 in cash and common shares is payable to the holders of Class A common shares of Pedanios, which are held by the two founders/Managing Directors of Pedanios who will continue to run the company. The cash portion for the two founders being $3,020,000 and the share portion being 4,895,026 common shares of Aurora Cannabis, priced at $2.14 per share, of which 17% will become free trading four months after closing. Aurora’s cash balance as of May 15, 2017 was $165 million.

Pedanios is a federally licensed medical and narcotic wholesale and GMP inspected narcotic import company, holding all relevant licenses and permits, and has been successfully importing, exporting, and distributing cannabis for medical purposes since December 2015, into and within the EU.

In January 2017, Germany’s parliament unanimously passed a new medical cannabis law, which appointed physicians as gatekeepers to access, established pharmacies as the point of sale, and introduced full insurance cost-coverage for medical cannabis patients across the country. In March 2017, when the new law came into force Pedanios’ monthly sales immediately doubled and growth continues to accelerate as Germany’s 80 million citizens begin to benefit from the improvements to patient access guaranteed by the new law.

Pedanios, over the last 90 days, has achieved cash flow positive operations, with gross revenues of about C$1.15 million, and costs of approximately C$1 million. Revenues for May, up to and including May 26, 2017, were approximately C$0.5 million, reflecting a 410% increase in the daily sales pace as compared to average for the eight months prior to the introduction of the new law, and an increase over the April and March 2017 averages of 70% and 108%, respectively.

This acquisition could be bad news for Aurora Cannabis rival Cronos Group Inc. (TSXV: MJN), whose wholly-owned licensed producer, the Peace Naturals Project Inc., developed a co-brand supply agreement with Pedanios GmbH.