Aurora moves to acquire fellow medical cannabis maker

Aurora Cannabis (TSXV: ACB), one of the largest medical marijuana companies in Canada, says its plans to acquire Peloton Pharmaceuticals, a late-stage ACMPR (Health Canada's Access to Cannabis for Medical Purposes Regulations)-applicant, out of bankruptcy protection was approved by Peloton's creditors at a recent meeting.

Peloton is constructing a 40,000 square foot cannabis production facility in Pointe Claire, Quebec, which received a "ready to build" letter from Health Canada in 2014. The company estimates that construction of the Peloton facility is 80% complete, and expects to be ready for Health Canada inspection pursuant to a License to Produce by the summer of 2017.

Under the terms of the proposal, and subject to all conditions precedent being satisfied, the company will provide a total investment pool of $7 million of cash and common shares of Aurora for distribution to creditors.