Business Combinations (Tables)

12 Months Ended

Jun. 30, 2020

Business Combinations Completed During the Years Ended June 30 2019 and 2018



Total consideration	$
Cash paid	—
Common shares issued	52,380
Funds held in escrow	688
	53,068

Net identifiable assets acquired (liabilities assumed)
Cash	280
Accounts receivable	316
Inventories	1,195
Prepaids and other current assets	657
Intangible asset: Distribution network	13,489
Accounts payable and accrued liabilities	(429	)
Deferred revenue	(618	)
	14,890

Purchase price allocation
Net identifiable assets acquired	14,890
Goodwill	38,178
	53,068

Net cash outflows
Cash consideration paid	—
Cash acquired	280
	280

Acquisition costs expensed
Year ended June 30, 2020	1,849



	MedReleaf (i)		Anandia (ii)		Aurora Hemp Europe (iii)		ICC (iv)		Whistler (v)		Immaterial transactions (vi)		Total
	$		$		$		$		$		$		$
Total consideration
Cash paid	—		—		8,302		—		—		2,918		11,220
Common shares issued	2,568,634		78,588		1,411		255,237		130,839		2,101		3,036,810
Share purchase warrants issued	—		19,565		—		—		—		—		19,565
Replacement share-based awards	75,373		—		—		7,664		—		—		83,037
Contingent consideration	—		—		—		—		24,395		383		24,778
Loan settlement	—		—		3,176		—		2,867		—		6,043
	2,644,007		98,153		12,889		262,901		158,101		5,402		3,181,453

Net identifiable assets acquired (liabilities assumed)
Cash	113,713		12,127		41		5,155		438		2		131,476
Accounts receivables	11,891		783		2,099		3,005		371		88		18,237
Income taxes receivable	8,078		—		—		—		—		—		8,078
Marketable securities	—		—		—		471		—		—		471
Biological assets	7,154		—		—		135		1,599		—		8,888
Inventories	32,626		33		2,226		762		3,042		—		38,689
Prepaid expenses and deposits	6,344		310		168		—		—		—		6,822
Property, plant and equipment	119,324		4,665		2,435		12,712		27,735		180		167,051
Other assets	581		—		—		—		478		4		1,063
Intangible assets
Customer relationships	62,800		4,700		—		—		1,900		—		69,400
Permits and licenses	89,757		11,000		—		149,745		14,500		—		265,002
Brand and trademarks	62,100		1,700		—		—		14,400		—		78,200
Patents	130		—		—		—		—		—		130
Intellectual property	70,200		12,300		—		—		—		—		82,500
Deferred tax asset	—		—		81		—		—		—		81
	584,698		47,618		7,050		171,985		64,463		274		876,088

Accounts payable and accruals	(16,919	)	(518	)	(1,683	)	(1,963	)	(1,045	)	(100	)	(22,228	)
Income taxes payable	—		—		(7	)	—		—		—		(7	)
Deferred revenue	—		(65	)	(6	)	—		—		—		(71	)
Loans and borrowings	—		(298	)	—		—		(6,003	)	—		(6,301	)
Asset retirement obligation	(217	)	—		—		—		—		—		(217	)
Deferred tax liability	(59,985	)	(7,055	)	—		(2,617	)	(8,894	)	—		(78,551	)
Provisions	(4,200	)	—		—		—		—		—		(4,200	)
	503,377		39,682		5,354		167,405		48,521		174		764,513

Purchase price allocation
Net identifiable assets acquired	503,377		39,682		5,354		167,405		48,521		174		764,513
Goodwill ⁽¹⁾	2,140,630		58,471		7,535		95,496		109,580		5,228		2,416,940
	2,644,007		98,153		12,889		262,901		158,101		5,402		3,181,453

Net cash outflows
Cash consideration paid	—		—		(8,302	)	—		—		(2,918	)	(11,220	)
Cash acquired	113,713		12,127		41		5,155		438		2		131,476
	113,713		12,127		(8,261	)	5,155		438		(2,916	)	120,256

Acquisition costs expensed
Year ended June 30, 2019	10,097		360		2,552		403		2,087		25		15,524

Net accounts receivables acquired
Gross contractual receivables acquired	14,262		791		2,099		3,005		371		88		20,616
Expected uncollectible receivables	(2,371	)	(8	)	—		—		—		—		(2,379	)
Net accounts receivables acquired	11,891		783		2,099		3,005		371		88		18,237


⁽¹⁾	Goodwill arising from acquisitions represent expected synergies, future income and growth, and other intangibles that do not qualify for separate recognition, as well as the deferred tax liability recognized for all taxable temporary differences. None of the goodwill arising on these acquisitions are expected to be deductible for tax purposes.

Adjustments to Initial Purchase Price Allocations of Assets Acquired and Liabilities Assumed at Acqusition Date

As required by IFRS, the preliminary acquisition date values were retrospectively adjusted to reflect the changes effective as of the acquisition date, as follows:



	Provisional allocation at acquisition		Adjustments		Final
	$		$		$
Intangible assets	30,900		(1,200	)	29,700
Deferred tax liability	(7,422	)	367		(7,055	)
Goodwill	57,595		876		58,471

As required by IFRS, the preliminary acquisition date values were retrospectively adjusted to reflect the changes effective as of the acquisition date, as follows:



	Provisional allocation at acquisition	Adjustments		Final
	$	$		$
Net identifiable assets acquired, excluding intangible assets	18,238	(517	)	17,721
Intangible assets	31,100	(300	)	30,800
Goodwill	108,763	817		109,580

As required by IFRS, the preliminary acquisition date values were retrospectively adjusted to reflect the changes effective as of the acquisition date, as follows:



	Provisional allocation at acquisition		Adjustments		Final
	$		$		$
Property, plant and equipment	18,012		(5,300	)	12,712
Intangible assets	141,558		8,187		149,745
Deferred tax liability	(35,389	)	32,772		(2,617	)
Goodwill	131,154		(35,658	)	95,496

As required by IFRS, the preliminary acquisition date values were retrospectively adjusted to reflect the changes effective as of the acquisition date, as follows:



	Provisional allocation at acquisition		Adjustments		Final
	$		$		$
Consideration payable	2,644,115		(108	)	2,644,007
Loans receivable	845		(845	)	—
Property, plant and equipment	134,414		(15,090	)	119,324
Intangible assets	335,988		(51,001	)	284,987
Loans and borrowings	(845	)	845		—
Provision	—		(4,200	)	(4,200	)
Deferred tax liability	(75,920	)	15,935		(59,985	)
Goodwill	2,086,382		54,248		2,140,630