Aurora Cannabis to Acquire Greenhouse Crop Consulting Company HotHouse Consulting Inc.

Published: August 7, 2018

Aurora Cannabis to Acquire Greenhouse Crop Consulting Company HotHouse Consulting Inc.

Aurora Cannabis Inc. as entered into a letter of intent whereby Aurora intends to acquire the cannabis business of HotHouse Consulting Inc., a provider of advanced greenhouse consulting services.

Founded by industry veteran Laust Dam in 2004, HotHouse specializes in hybrid greenhouse growing techniques. Since its founding, HotHouse has consulted on a variety of agricultural crops but has focused in recent years on the specialized requirements of large scale cannabis production. With more than 70 years of combined experience, HotHouse’s team of consultants currently provide services for approximately 50 customers globally. Upon closing of the acquisition, Laust Dam will join Aurora Larssen Projects (“ALPS”) as VP of Horticultural Development.

Through this acquisition, Aurora enhances ALPS post-construction services offering, providing customers with ongoing support and consulting by HotHouse’s crop specialists. These services will include grower training to ensure ALPS designed facilities continue to run at optimal efficiency following client handover in addition to crop planning, irrigation strategies, control, nutrition, climate and integrated pest management. Aurora and its clients also gain industry leading insight and knowledge of large scale, component-based irrigation systems which offer more precision but require a detailed operational understanding. For example, the systems deployed at Aurora Sky in Alberta require the ability to monitor crop health, determine deficiencies and make corrections while being aware of several interrelating factors. Producing results such as an improvement of just 1% in this area will yield measurable increases in top line annual revenue growth from a facility of Aurora Sky’s scale.

“Developing efficient and technologically advanced greenhouses allows Aurora to produce and harvest the highest quality cannabis at incredible scale while maintaining unmatched, ultra-low costs per gram, per square foot, per year,” said Thomas Larssen, President of Aurora Larssen Projects. “Through the addition of Laust and the entire team at HotHouse, ALPS gains significant insight and experience that we can apply to our industry leading cultivation design, engineering and consulting projects. With the significant exposure and strategic support gained through the backing of Aurora, ALPS has emerged as the cannabis industry’s preeminent hybrid greenhouse engineering and consulting partner.”

Laust Dam, Founder of HotHouse Consulting, added, “Managing potential disease, varying climate conditions, energy use, and emergencies become greatly amplified in a greenhouse environment. Together with ALPS, we can leverage our existing relationships with key technology providers and the latest implementation techniques along with our collective insight to develop the most advanced hybrid greenhouse facilities.”

Closing of the transaction is subject to the completion of definitive agreements and approval of the TSX.